1. Introduction - Europa by zhouwenjuan

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                    EUROPEAN COMMISSION




                                                   Brussels, 04.02.2011
                                                   SEC(2011) 172 final


                     COMMISSION STAFF WORKING DOCUMENT




     Report on the implementation of the recommendations of the High Level Group on the
                     Competitiveness of the European Chemicals Industry




EN                                                                                        EN
     1.      INTRODUCTION

     In 2007 the Commission set up a High Level Group (HLG) on the Competitiveness of the
     European Chemicals Industry1 in order to “conduct economic and statistical analysis of the
     factors determining the structural changes in the chemicals industry” and “to formulate a set
     of policy recommendations addressed to policy makers, industry and civil society
     organisations”.

     In February 2009, the HLG adopted its final report (HLG Report) including 39 policy
     recommendations2, which were agreed unanimously and addressed to a wide range of actors,
     including the Commission services, Member States and regional authorities, as well as
     industry and other stakeholders.

     In May 2009 the Competitiveness Council adopted conclusions on the HLG Report and
     invited the Commission to report – in close consultation with all stakeholders - on the
     implementation of the recommendations by the end of 2010. This report is based on
     information the Commission has collected through a series of meetings with individual
     stakeholders and a workshop on 15 September 2010 and presents a selection of the main
     activities implementing the recommendations of the HLG – a more comprehensive overview
     is presented in the annex to this Commission Staff Working Paper.


     2.      SETTING THE SCENE

     The chemicals industry is at the basis of most industrial value chains. It is not only an
     important economic sector in its own right but has a key role as a major innovation motor for
     the whole economy and a solution provider for most societal challenges identified in the
     Europe 2020 Strategy. It is, therefore, a key contributor to most of the Strategy’s Flagship
     Initiatives. At the same time, an adequate regulatory framework and good corporate
     governance are necessary to avoid adverse effects of chemicals on human health and the
     environment.

     The chemicals industry has been one of the manufacturing sectors most affected by the
     economic crisis, largely due to the severe downturn in its most important customer sectors
     (automotive, construction, machine tools producers).

     The worst point of the crisis was reached at the end of 2008. Since January 2009, sales and
     production levels have been steadily recovering, without however reaching pre-crisis levels.
     The chemicals industry registered in 2009 -18.3% in sales and -11.3% compared to 2008. In
     2009, 59,000 jobs out of 1.2 million were lost, around 35,000 of which were due to the
     economic crisis. When considering the first ten months of 2010, output in the EU chemicals
     industry experienced an increase of 11.3% compared to the same period of 2009.

     With a trade surplus up to € 35.6 billion in the first nine months of 2010 (€ 3.1 billion more
     than in Jan-Aug 2009), the European chemicals industry remains highly competitive on a


     1
            Commission Decision 2007/418/EC of 14 June 2007 setting up the High Level Group on the
            Competitiveness of the Chemicals Industry in the European Union (http://eur-
            lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2007:156:0034:0036:en:PDF)
     2
            http://ec.europa.eu/enterprise/sectors/chemicals/files/final_report/hlg_final_report_july09.pdf



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     global scale. Nevertheless, the crisis has accelerated the reshaping of the world chemicals
     markets. Strong growth in some emerging countries – most notably China and India - creates
     new market opportunities but also new competing industries benefitting from lower costs and
     proximity to growing markets. Moreover, in the petrochemicals industry, the Middle East has
     emerged as an important player, benefitting from lower raw materials costs. As a result, the
     share of the European chemicals industry in sales worldwide fell from 29% in 2007 to 24% in
     2009.

     Against this background, the implementation of the HLG recommendations becomes even
     more important to foster the global competitiveness of the European chemicals industry.


     3.      INNOVATION AND RESEARCH

     One of the strongest points of the European chemical industry is its integration into research
     and innovation networks and clusters, often multi-locational and strongly interlinked with
     major downstream industries. European Technology Platforms (ETPs) provide a framework
     for stakeholders to define research and innovation priorities, roadmaps and plans. Innovation
     Partnerships under the Innovation Union3 flagship initiative of the Europe 2020 strategy can
     integrate the work of ETPs and improve the market uptake of innovative products.

     The ETP for sustainable chemistry SusChem has been successful in orientating research
     initiatives and supporting the participation of chemical companies in EU R&D programmes.
     SusChem refocused its activities and now covers the full knowledge triangle research,
     innovation and education. Recognising that innovation has to start simultaneously at various
     stages of the value chain, SusChem has increased co-operation with relevant partners to
     address sustainability across sectors and underlined the importance of expanding this
     integrated approach through an active involvement in the upcoming Innovation Partnerships.

     The UK established a Chemicals Innovation Knowledge Transfer Network4 (CIKTN) in
     2006 to stimulate and support product and process innovation in the UK chemicals-using
     industries. In Italy, the Technological Innovation Fund5 finances experimental development
     in start up companies.

     Many regions have developed policies to support clusters. There is also increasing
     international co-operation between clusters, such as those between Axelera (Lyon) and
     Chemie-Cluster Bayern (Munich) or Flanders, Limburg and North Rhine-Westphalia.
     Nevertheless, information on the key factors for success of particular clusters or chemicals
     regions is still limited. ChemClust is a 1.7m € project of the European Chemical Regions
     Network (ECRN) with 10 chemical regions in 7 Member States, co-financed by Interreg IIIC.
     The three-year initiative started at the end of 2009 to improve the effectiveness of regional
     development policies within innovation and cluster policies.

     The European Cluster Observatory6 provides a wide variety of data, e.g. mapping of
     regional clusters, policy reports, case studies, an analysis of which might allow criteria for
     success, to be identified.


     3
            http://ec.europa.eu/enterprise/policies/innovation/innovation_union/index_en.htm
     4
            https://ktn.innovateuk.org/web/chemistryinnovationktn
     5
            http://www.riditt.it/
     6
            http://www.clusterobservatory.eu/



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     There is a very wide range of research and innovation activities, both in the private and the
     public sectors. However, the EU still lags behind some other world regions both in terms of
     R&D spending (in particular by the private sector) and effectiveness in turning knowledge
     into new products and services. It is one of the main objectives of the Innovation Union to
     strengthen every link in the innovation chain, from research to commercialisation.

     The Lead Market Initiative7 intended to speed up and facilitate the translation of
     technological and non-technological innovation into commercial products and services
     through prioritised regulation, public procurement, standardisation and additional supporting
     activities. It covered six sectors, most of which (bio-based products, sustainable construction,
     recycling, protective textiles, renewable energies) are strongly linked to the chemicals
     industry.

     The Key Enabling Technologies8 (KETs) initiative intends to ensure the deployment of
     technologies to facilitate the transition of the EU’s industrial base to a knowledge-based, low
     carbon and resource-efficient economy. The European chemicals industry is fully involved in:
     nanotechnology, micro and nano-electronics, advanced materials, bio-technology, photonics,
     advanced manufacturing systems and carbon capture and storage. A High Level Group on
     KETs has been set up and started its work in July 2010 in order to provide policy
     recommendations and concrete proposals.

     Under the initiative FIT-REACH, Italy has allocated 120 million € from its Technological
     Innovation Fund to support projects of experimental development, including industrial
     research, on product and/or process innovation aimed at substituting or eliminating
     Substances of Very High Concern, as defined in the REACH Regulation.

     The Centre for Process Innovation9 (North East England) is an open access innovation
     centre for the chemistry and process industries. CPI has helped hundreds of businesses and
     created over 12 new businesses of its own. It has helped in creating and preserving 3,350 jobs,
     worked with over 850 SMEs, created over 30 new products and helped leverage £545m of
     private sector investment.

     The chemical industry has made progress in implementing a more effective dialogue with
     society. Nevertheless, gaining the confidence of all stakeholders in the sustainability and
     safety of chemical products and processes requires continued and long-term efforts.

     The Dutch Chemical Industry Association (VNCI) has launched the initiative “Chemistry is
     everywhere”10, explaining the importance of chemistry and the solutions it can provide for the
     social problems of today and tomorrow. The UK Chemicals Stakeholder Forum with
     members from all stakeholder groups advises on how industry should reduce the risks to
     human health and the environment from hazardous chemicals.

     The protection of Intellectual Property Rights and an efficient system to gain and enforce
     them remains a major strategic concern for the European chemicals industry. In 2009 the
     Council adopted a General Approach and conclusions on an enhanced patent system for


     7
            Communication from the Commission “A lead market initiative for Europe”, COM(2007) 860 final
     8
            Communication from the Commission "Preparing for our future: Developing a common strategy for key
            enabling technologies in the EU", COM(2009) 512 final
     9
            http://www.uk-cpi.com/
     10
            http://www.chemieisoveral.nl/



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     Europe including a common patent court structure, a common understanding on renewal fees
     and partnership arrangements between patent offices11. Despite initial progress, the Council
     failed to reach agreement on a unified EU patent regime due to an inability to agree on
     translation requirements. Following failure to reach agreement, a group of Member States
     requested that the Commission prepare a proposal for a Council Decision to continue work on
     a unified patent in a smaller group of Member States via enhanced cooperation. The Council
     will consider the proposal in 2011. Work on a unified patent court has been suspended
     pending an opinion by the European Court of Justice on the compatibility of the court with the
     European Treaties. The opinion is expected to be published by March 2011.

     In the fight against counterfeiting and piracy, the Commission has issued two
     Communications on industrial property rights12 and IPR enforcement13 and set up a European
     Observatory on Counterfeiting and Piracy.

     The Anti-Counterfeiting Trade Agreement14 (ACTA) is a multilateral agreement (agreed in
     December 2010) for the purpose of establishing international standards on intellectual
     property rights enforcement15.


     4.      HUMAN RESOURCES

     There is a need to attract more talented people to studies related to science and to
     innovation management. Studies and vocational training should address the future skills
     needed by companies and provide knowledge about science, technology and business reality.
     There are many interesting initiatives by authorities and/or companies and industry
     associations to provide practical tools and better understanding of chemistry and company
     reality which could inspire initiatives in other parts of the EU:

     From primary schools…

     The Chemical Industry Association of Hesse has developed a wide range of initiatives to
     increase children’s knowledge of science and chemistry through scientific experiments,
     involving also teachers and families.

     …to higher studies…

     The Ministry for Innovation, Science, and Research of North Rhine-Westphalia launched the
     project “Zukunft durch Innovation” (Future through innovation) implementing a wide range
     of initiatives inviting young people to explore their technical and scientific talents.

     … to University




     11
            Council document 17229/09
     12
            Communication from the Commission “An Industrial Property Rights Strategy for Europe” COM(2008)
            465 final
     13
            Communication from the Commission “Enhancing the enforcement of intellectual property rights in the
            internal market”, COM(2009) 467 final
     14
            http://ec.europa.eu/trade/creating-opportunities/trade-topics/intellectual-property/anti-counterfeiting/
     15
            http://trade.ec.europa.eu/doclib/docs/2010/october/tradoc_146699.pdf



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     Since 2000, the Christian-Albrechts-Universität in Kiel has offered a study program called
     "Wirtschaftschemie" (business chemistry) which combines chemistry and business
     administration curricula.

     In 2009 the Commission presented a set of measures to develop and strengthen the
     University-Business Dialogue as part of a wider effort to support the modernisation of higher
     education16 and proposed to expand the role of its University-Business Forum, which has met
     annually since 200817.

     The “New Skills for New Jobs” initiative intends to address skills needs by building stronger
     bridges between education and training and the work environments. Concrete
     recommendations have been provided by a group of independent high-level experts18. Two
     studies, one by the Commission19 and another by CEFIC20, analyse future skills needs in the
     chemical industry.

     The Commission set up a thematic working group currently composed of 19 European
     countries21, around the specific theme of “Maths, Sciences and Technology (MST)” to
     improve participation in MST studies and careers.

     The International Union of Pure and Applied Chemistry (IUPAC) and UNESCO designated
     2011 as the International Year of Chemistry22. The European Association for Chemical and
     Molecular Sciences (EuCheMS) is the European coordinating partner. The goals of IYC2011
     are to improve the public image of chemistry, create interest in chemistry among young
     people and to underline the critical role it plays in a sustainable future. The Commission plans
     to mark IYC2011 through a number of activities.


     5.      REGULATION

     Regulation remains of key importance for the chemicals industry. It needs to strike a balance
     between protecting public interest and limiting costs and administrative burden for
     companies.

     As part of its Better Regulation initiative, the Commission has extended the use of impact
     assessments and has introduced an Impact Assessment Board to scrutinise the quality of
     impact assessments across the Commission. Impact assessments have been prepared for all
     recent major initiatives in the chemicals area, involving stakeholders from the outset.


     16
            Commission Communication "A new partnership for the modernisation of universities: the EU Forum
            for University Business Dialogue", http://eur-
            lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2009:0158:FIN:EN:PDF
     17
            Report of the last meeting: http://ec.europa.eu/education/higher-
            education/doc/business/forum2010/report.pdf
     18
            “New Skills for New Jobs: Action Now - A report by the Expert Group on New Skills for New Jobs”
            http://ec.europa.eu/social/main.jsp?catId=88&langId=fr&eventsId=232&furtherEvents=yes
     19
            “Investing in the Future of Jobs and Skills Scenarios, implications and options in anticipation of future
            skills and knowledge needs - Sector Report - Chemicals, Pharmaceuticals, Rubber & Plastic Products”,
            May 2009 http://ec.europa.eu/social/main.jsp?langId=en&catId=782&newsId=555&furtherNews=yes
     20
            http://www.cefic.be/Files/Publications/Skills-for-Innovation-in-the-European-Chemical-Industry-
            corr.pdf
     21
            AT, BE, BG, CY, CZ, DE, DK, EE, ES,, IE, LV, MT, NL, NO, PT, SE, SK, TR, UK
     22
            http://www.chemistry2011.org/



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     Major efforts have been made to improve the understanding of regulation. For example,
     under REACH and CLP extensive guidance has been prepared with close involvement of the
     chemicals industry. ECHA information activities include stakeholder events, webinars and
     assistance online, a newsletter, workshops and the publication of short practical guides. The
     network of the REACH National Help Desks answered more than 7.500 inquiries in 2009. In
     order to address critical questions and find practical solutions, a so-called Directors Contact
     Group has been set up, involving representatives from the chemicals industry, the
     Commission services and ECHA.

     There is still more work to do to streamline and increase coherence between different pieces
     of legislation. As a recent example, the Commission has proposed to align REACH and RoHS
     procedures with regard to restricting hazardous substances in the RoHS recast, which has
     eventually been supported by the Council and the European Parliament. The Commission has
     launched a study in the preparation of the review of the scope of REACH by 1 June 2012 as
     mandated by Article 138 (6) and has invited all stakeholders to contribute.

     The Commission has also stepped up its work regarding more harmonised and correct
     application of agreed rules by monitoring closely infringements and complaints.


     6.       ENERGY AND RAW MATERIALS

     Reliable access to raw materials and energy at fair prices is crucial for the competitiveness
     of the chemicals industry. Progress has been made on a number of initiatives relating to
     improvements of infrastructure and efficiency of markets. Nevertheless, the EU's dependency
     on external supplies remains critical and further efforts are needed to stabilise supplies in co-
     operation with trading partners and Member States.

     In July 2009, the Commission proposed a new Regulation on security of gas supply23
     addressing weaknesses that became evident in the 2009 gas crisis.

     Also in July 2009, the third Internal Energy Market Package24 was adopted. It aims at
     making open markets more effective in achieving the lowest possible energy prices while
     guaranteeing better energy security and sustainability.

     The European Energy Programme for Recovery25 (EEPR) of 2009 provided 2.365 bn € to
     31 gas and 12 electricity projects.

     In 2010 the Commission submitted a report on measures to safeguard the security of
     electricity supply and infrastructure investment26. It provides a positive assessment of
     network capacity and generation in the short term while in the medium/long term large
     investments will be necessary.

     In spring 2010, the Commission adopted new transparency rules to ensure effective access
     to natural gas transmission systems and to provide a minimum guarantee of equal market



     23
            http://ec.europa.eu/energy/security/gas/gas_en.htm
     24
            http://ec.europa.eu/energy/gas_electricity/third_legislative_package_en.htm
     25
            http://ec.europa.eu/energy/eepr/index_en.htm
     26
            COM(2010)330



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     access conditions in practice27. The Commission is currently preparing a new Energy
     Infrastructure Package, which will build upon the current TEN-E (Trans-European energy
     networks) framework.

     In 2008 the Commission launched the Raw Materials Initiative aiming at undistorted access
     to raw materials, sustainable supply from domestic sources and resource efficiency and
     recycling. A new Communication in 2011 will outline the future development of this
     initiative.

     In line with the EU 2020 objective of building a bio-based economy, the chemicals industry
     needs to progressively shift its raw material basis towards renewables. This is complex
     and will require time, in-depth research and substantial investments. Subsidies for the use of
     renewables as fuel and import tariffs on renewables affect their availability as feedstock for
     the chemicals industry. Moreover, stability and predictability of subsidies as well as long-term
     profitability of subsidized products and projects remain important. However, progress on
     these issues is often slow due to the need to strike a balance between different and often
     competing interests of various stakeholders.

     In the framework of the Lead Market Initiative, an ad-hoc Advisory Group provided
     specific recommendations for the development of the market for bio-based products. The
     Commission issued two standardisation mandates to CEN and published Green Public
     Procurement Guidelines28.

     Research into biorefineries has been supported by the 7th Framework Programme for
     Research and Development (FP7). A coordination and support action was launched in 2009
     and three large research projects started in 2010.

     The BioChem project, co-financed by Europe Innova, started in 2010. It supports companies
     to enter the emerging market for bio-based products in the chemicals sector.


     7.      LOGISTICS

     Improvements to the transport systems and infrastructure for chemicals will be important
     factors for keeping the chemicals industry in the EU or to attract new investments.
     Sustainability and chemical safety, as well as a well-managed dialogue with the public are
     essential to get acceptance for such improvements.

     ChemLog29 - Chemical Logistics Cooperation in Central and Eastern Europe - is a
     cooperation project between regional authorities, chemical industry associations and scientific
     institutions from Germany, Poland, the Czech Republic, Slovakia, Hungary and Italy to
     improve framework conditions for supply chain management in Central and Eastern Europe.




     27
            http://ec.europa.eu/energy/gas_electricity/gas_committee_en.htm
     28
            http://ec.europa.eu/environment/gpp/guideline_en.htm
     29
            http://www.chemlog.info/



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     The Commission adopted a Communication on the Future of Transport30 in June 2009,
     aiming at identifying policy options for the next White Paper on a European Transport Policy,
     expected in 2011.

     In the framework of railway freight policies, the Commission has proposed a Regulation
     concerning a rail network for competitive freight, which foresees the establishment of nine
     international railway corridors with favourable conditions for freight train traffic within the
     next 3-5 years31. A study on Single Wagonload Traffic is in preparation32.

     A new Regulation on access to the international road haulage market33 entered into force in
     May 2010. Along with the Directive on road charging34 (Eurovignette) which is currently
     being revised, this Regulation aims at reducing the number of empty lorries on European
     roads and to ease road traffic congestion. The Commission is also carrying out studies to
     assess the costs and benefits of increasing the mass and/or size of trucks.

     In the context of the Freight Transport Logistics Action Plan35, the Commission launched a
     “bottleneck exercise” in cooperation with industry.

     In December 2008 the Commission adopted the Action Plan for the deployment of Intelligent
     Transport Systems36 (ITS) in the field of road transport and for interfaces with other
     transport modes (the ITS Action Plan), in order to coordinate and accelerate their
     deployment and therefore make road transport in the EU more sustainable, efficient and clean.
     Its associated legal instrument, the ITS Directive, has been adopted in July 201037.


     8.      CLIMATE CHANGE

     The chemicals industry is a major provider of solutions to fight climate change by providing
     materials for insulation, generation of energy from renewable sources, storage and transport
     of energy and capture of CO2. It is also a major consumer of fossil fuels and has to continue
     efforts to reduce greenhouse gas (GHG) emissions where possible.

     In line with the provisions of the ETS Directive, in December 2009 large parts of the
     chemicals industry were deemed to be exposed to a significant risk of carbon leakage38. On
     the basis of a thorough evaluation of emission and production data, the Commission has
     presented a draft Decision determining transitional Union-wide rules for the harmonised free
     allocation of emission allowances pursuant to Article 10a of Directive 2003/87/EC, including


     30
            COM(2009) 279, http://eur-
            lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2009:0279:FIN:EN:PDF
     31
            COM(2008)852, http://www.europeanlawmonitor.org/legislation/2008/COM2008852text.pdf
     32
            Single wagon load is a flexible system which allows companies to choose how many wagons he wants
            to dispatch instead of running a block train
     33
            http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:300:0072:0087:EN:PDF
     34
            COM (2008)436, http://eur-
            lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2008:0436:REV1:EN:PDF
     35
            COM (2007)607 http://eur-
            lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52007DC0607:EN:NOT
     36
            COM (2008)886 http://eur-
            lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52008DC0886:EN:NOT
     37
            Directive 2010/40/EU http://eur-lex.europa.eu/JOHtml.do?uri=OJ:L:2010:207:SOM:EN:HTML
     38
            Commission Decision 2010/2/EC http://eur-
            lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2010:001:0010:0018:EN:PDF



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     benchmarks for 15 chemical products in a manner that sets an incentive for further reduction
     of GHG emissions while providing for the necessary free allocation of emission certificates to
     avoid carbon leakage. In December 2010, the Member States approved the draft Decision in
     the Climate Change Committee.

     Even though the Copenhagen Accord fell short of the EU's expectations, it continues efforts at
     international level to engage other countries to take on more ambitious climate actions, and
     consequently level the playing field between producers in the EU and other countries. The
     Commission published a Communication in May 2010 revising the estimated costs of the
     20% reduction target, and assessing options and costs for moving to 30%. In the absence of a
     global agreement on binding reduction targets, the Commission is considering further studies
     on sectoral approaches, some of which concern the chemicals industry (oil refining,
     fertilisers, inorganic chemicals).


     9.      TRADE

     The European chemicals industry operates globally and fair access to raw materials and
     markets is essential.

     The EU pursued its efforts to obtain agreement in the WTO Doha Development Agenda
     negotiations despite of some reluctance from major trading partners. Discussions on the
     sectoral proposal on chemical tariffs liberalisation and negotiations on trade facilitation have
     been ongoing, and the Commission will continue to make all efforts to bring these
     negotiations to a successful conclusion and secure the participation of all major actors.

     More progress has been made with regard to Free Trade Agreements (FTA). The new FTA
     with the Republic of Korea will significantly improve access of the EU chemicals industry
     to this important market, inter alia by including a mediation and dispute settlement
     mechanism and will serve as a model for future FTAs. Other ongoing negotiations of
     importance for the chemicals industry, notably with Ukraine, India, Canada and Singapore are
     making progress and negotiations with MERCOSUR have been reopened.

     The Commission services are examining how to address practices detrimental to the
     chemicals industry such as double pricing, and will continue applying trade defence
     instruments where justified.

     In 2009, the Commission compiled an inventory of trade barriers for raw materials and
     assessed their economic impact. Increased efforts to fight these barriers include a WTO case
     on Chinese export restrictions on certain key raw materials for the chemicals industry and
     bilateral agreements.

     During the Swedish Presidency of the Trade Policy Committee, the Commission analyzed
     the main impediments to trade faced by the chemicals industry and identified a range of
     follow-up actions. Amongst them, the Commission set up a Market Access Working Group
     on chemicals to agree on action and strategies to remove such trade impediments.

     The Commission worked to find stable and low cost access to bio-based raw materials to
     meet the trade interests of the EU and to balance the needs of producers and users of these
     raw materials.




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     Difficulties experienced by EU economic operators in their dealings with certain customs
     authorities have also been regularly discussed in the relevant bilateral customs cooperation
     fora.


     10.     CONCLUSIONS

     This report and its annex, which contains for each recommendation of the HLG a more
     detailed list of actions, have identified a very wide range of initiatives taken by the
     Commission, the Member States, Chemical Regions, industry and other stakeholders in the
     context of the implementation of the HLG recommendations. Even though several activities
     had already been launched before 2009, the HLG recommendations have served

      to get a comprehensive overview of all relevant actions and initiatives,

      to better understand the role and relevance of the chemical industry and

      to reinforce efforts to maintain and strengthen the attractiveness of the EU for the
       chemicals industry while ensuring safety and sustainability of chemicals.

     Most of the actions and initiatives are mid- to long-term and it is rather early to draw
     conclusions on which recommendations have been implemented most successfully. However,
     it is fair to say that implementation is still rather uneven, both in terms of individual
     recommendations and actors involved.

     There have been a lot of new developments in innovation policy and networks, initiatives to
     better interlink energy infrastructures and to more concretely identify and address trade
     barriers. On the other end, progress in other areas such as intellectual property rights, global
     or sectoral agreements on climate change, transport and logistics, or multilateral trade
     negotiations has been slow. However, it has to be recognised that progress often depends on
     factors outside the direct influence of authorities and stakeholders dealing with chemicals
     policy.

     The level of implementation in the various Member States or regions is very uneven. Whereas
     this can to a certain degree be explained through the presence or absence of significant
     chemicals industries, there is clearly scope to make better use of best practice examples and
     evaluate, transfer and adapt these practices to Member States and regions which have so far
     been less active.

     The recommendations of the HLG are still valid as a roadmap for the competitiveness of the
     European chemicals industry. Their further implementation will take place in the new context
     of the Commission's Europe 2020 Strategy and its flagships initiatives, such as “Innovation
     Union”, “Resource efficient Europe”, “An industrial policy for the globalisation era” and “An
     agenda for new skills and jobs”. The follow-up of the implementation of the HLG
     recommendations has been identified as an action under the Industrial Policy
     Communication39.




     39
            COM (2010) 614



EN                                                 11                                                   EN
                                              ANNEX

     This Annex provides a comprehensive overview of the activities implementing the
     recommendations of the HLG, including also more detailed information and references of
     those mentioned in the main part of the Staff Working Paper.

     On the basis of the available information, several Member States have organised a follow-up
     to the recommendations of the HLG at national level:

      Belgium set up a High Level Group on the chemicals industry to analyse at national level
       the implementation of the HLG Recommendations. The Belgian HLG was organised
       around five topics: innovation, energy, logistics, taxation and employment. The group has
       presented a Memorandum for the future Government.

      A High Level Working Group on the Chemicals Industry (HLWG) has been set up by the
       Ministry of Industry and Trade (MIT) and the Association of the Chemicals Industry in
       2009 in the Czech Republic to search for an exit strategy from the economic crisis in the
       chemicals industry and to propose recommendations to mitigate the impacts of the
       recession. In May 2010, a conference on the conclusions and the recommendations of the
       HLWG has been organised with the participation of 80 experts.

      Germany has organised a number of activities that culminated with a national conference
       on the implementation of the recommendations of the High Level Group, organized in
       Berlin on July 1, 2010




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                                                        The implementation of the HLG recommendations

 1.        INNOVATION AND RESEARCH

      1 Industry, in cooperation with governments,                Member States
        should set up topical innovation networks to              CZ: Czech technological platform for bio-components: co-financed by the Czech Industry
        promote key strategic innovations and foster best         Agency in the frame of technological platforms programme
        practices and exchange of knowledge and
        experience between them. One such network                 UK: CIKTN – Chemistry Innovation Knowledge Transfer Network40 established in 2006 to
        should deal with ‘energy and climate change’              stimulate and support product and process innovation in the UK chemistry-using industries

                                                                  Regions
                                                                  Chemie-Cluster Bayern - Chemical Assisted Living41 (Bavaria) : a contact and competence
                                                                  network for all areas in which chemical products make a sustainable contribution to improve
                                                                  quality of daily life, e.g. e-mobility, renewable energy, CO2 prevention, new materials, building
                                                                  chemistry and polymer chemistry.

                                                                  Baxel: cooperation and staff exchange between Chemie-Cluster (Bavaria) and Axelera (Rhône-
                                                                  Alpes)

                                                                  Wilton Innovation Connector in the Wilton Chemical Site (North East England): in 2009 was
                                                                  formed the Innovation Accelerator, hosted by the Centre for Process Industry on the Wilton
                                                                  Chemical Site. Its goal is to assist SMES and stimulate innovation amongst North East process
                                                                  industry by encouraging new business growth. The construction of an incubator at the Wilton
                                                                  site, designed specifically for new process industry start-ups will has beeen completed in 2010.
                                                                  Community outreach and visitor engagement centre and a training centre are additional projects
                                                                  for which funding has still to be found.



 40
         https://ktn.innovateuk.org/web/chemistryinnovationktn
 41
         http://www.chemiecluster-bayern.de/en/



EN                                                                           13                                                                          EN
                                                                      Industry
                                                                      Elastopôle: Rubber and polymers competitiveness cluster, France, aims to harness the strengths
                                                                      of industry, science and universities in the rubber and polymer industry. The goal is to promote
                                                                      business and employment through innovative technological developments covering the whole
                                                                      product life cycle: raw material, applications, process and environment. Four regions have been
                                                                      engaged: Pays de la Loire, Auvergne, Ile de France and Centre region42.

                                                                      Axelera: this association was created by the cluster’s founding members, namely Arkema,
                                                                      CNRS, IFP, Rhodia and Suez, to act as the vehicle for the “Lyon Rhône-Alpes Chemicals and
                                                                      Environment competitiveness cluster” project. The activities of the cluster, which has more than
                                                                      170 members to date, are focused on 12 R&D (Research & Developments) programs,
                                                                      implementation and equipment projects and 'Strategy and Prospective' missions43.

      2 Industry and public authorities at all levels should          Regions
        strengthen clusters (and open innovation                      ChemClust (10 partners, 7 Member states): it is a three year initiative of the European Chemical
        processes) which facilitate cooperation across                Regions Network (ECRN) established as a result of an INTERREG IIIC project. ChemClust’s
        sectors and across borders, with the aim of further           objective is to improve the effectiveness of regional development policies in the area of
        stimulating, accelerating and facilitating cross-             innovation and cluster policies for the chemical sector by interregional cooperation and
        cutting innovation throughout the value chain.                exchange of best practice44.

                                                                      Humber Chemical Focus ltd45 (HCF) runs a number of conferences, events and network groups
                                                                      as well as community liaison panels. The purpose of the network groups is to bring members
                                                                      together to discuss topical issues, share best practice and to ensure positive progression of the




 42
          http://www.elastopole.com/
 43
          http://www.axelera.org/srt/axelera_en/home
 44
          http://lsa-st52.sachsen-anhalt.de/documents/ECRN_11_Newsletter_May2010.pdf
 45
          http://www.humberchemicalfocus.org/



EN                                                                                 14                                                                        EN
                                                             Humber Chemical Industry within the region (Humber, UK)

                                                             Yorkshire Chemical Focus Limited46, (YCF) is a not-for-profit company funded in 2005 by
                                                             Regional Development Agency Yorkshire Forward, and industry members to provide an
                                                             independent voice for chemical and related businesses in Yorkshire. (Yorkshire, UK)

                                                             Plastiwin47: vertically integrated plastic cluster (Wallonia) brings together three key players in
                                                             the plastics industry (manufacturers of raw materials, designers of molds, tooling and
                                                             machinery, processors such as injectors, extruders, blowers, etc.) to facilitate contacts, the
                                                             establishment of commercial partnerships and innovation.

      3 As part of further strengthening existing            Regions
        networks, the technology platform SusChem            Proof of Concept Programme48, from research in labs to marketplace (Scotland): The Proof of
        should explore opportunities beyond the defined      Concept Programme helps researchers from Scotland's universities, research institutes and NHS
        key areas to include innovation leadership issues    Boards export their ideas and inventions from the lab to the global marketplace and create new
        (‘bringing good ideas to the market’) in a new       sustainable businesses for Scotland. It supports the pre-commercialisation of leading-edge
        SusChem+ structure.                                  technologies emerging from Scotland's universities, research institutes and National Health
                                                             Service Boards.

                                                             FISCH – Flanders Strategic Initiative for Sustainable Chemistry49 (now SusChem Flanders -
                                                             Flanders) targets the creation of a Flemish platform for sustainable chemistry, where small,
                                                             medium and large companies, associations, knowledge centres, service provides, authorities and
                                                             investment companies co-operate in an open way on experiments, programmes and projects
                                                             related to sustainable chemistry.




 46
         http://www.ycf.org.uk/default.aspx
 47
         http://www.plastiwin.be/
 48
         http://www.scottish-enterprise.com/proofofconcept
 49
         http://www.innovatienetwerk.be/projects/1410



EN                                                                      15                                                                           EN
                                                                         Industry
                                                                         SusChem50 Cooperation with other technology platforms: “Water Supply and Sanitation
                                                                         Technology Platform” in the project “Re-thinking water as a resource” and “Advanced
                                                                         Engineering Materials and Technologies”. SusChem is the only technology platform having 11
                                                                         national platforms enabling an effective alignment for innovation partnership proposals.

      4 Private sector should increase efforts to speed up               Industry
        innovation                                                       Investment in R&D and innovation has been kept almost at pre-crisis levels during the economic
                                                                         downturn, at least in large companies.

                                                                         European Sustainable Chemistry Award: has been launched by EuCheMS51 (European
                                                                         Association for Chemical and Molecular Sciences) in order to raise the profile of sustainable
                                                                         chemistry and be a spur to innovation and competitiveness52.

      5 Public sector should provide effective support to                European Union
        private sector efforts                                           Communication from the Commission “A lead market initiative for Europe”, COM(2007)860
                                                                         final53: The Lead Market Initiative is the European policy for 6 important sectors (eHealth,
                                                                         sustainable construction, protective textiles, bio-based products, recycling and renewable
                                                                         energies) that are supported by actions (Standardisation Labelling Certification, Legislation,
                                                                         Public procurement and Complementary Actions) to lower barriers to bring new products or
                                                                         services onto the market. The European Commission, Member States and industry work together
                                                                         to carry out the action plans for the 6 Lead Markets.

                                                                         Communication from the Commission "Preparing for our future: Developing a common
                                                                         strategy for key enabling technologies in the EU", COM(2009)512 final54. Key enabling
                                                                         technologies (KETs) are an important factor in the industrial and economic future as they can be


 50
         http://www.suschem.org/
 51
         http://www.euchems.org/AboutEuCheMS/index.asp
 52
         http://www.euchems.org/esca/
 53
         http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2007:0860:FIN:en:PDF
 54
         http://ec.europa.eu/enterprise/sectors/ict/files/communication_key_enabling_technologies_sec1257_en.pdf



EN                                                                                    16                                                                       EN
                                                             used to improve the industrial capacities of the EU, enhance the competitiveness and
                                                             sustainability of the EU’s economy, and enable the EU to fulfil its ambition of becoming a
                                                             principal player when facing global societal challenges. The EC identified nanotechnology,
                                                             micro- and nanoelectronics, photonics, advanced materials and biotechnology as KETs.

                                                             These technologies need to be developed further to help the EU better address global societal
                                                             challenges. These technologies may help the development of energy efficient and low carbon
                                                             technologies that will help the EU reach its energy and climate change targets. Due to potential
                                                             scientific concerns regarding safety aspects as well as social concerns legitimate health and
                                                             environmental consequences of these KETs need to be addressed upfront.

                                                             The flagship initiative “Innovation Union” 55 sets outs a comprehensive innovation strategy for
                                                             Europe focussed on major areas of concern for citizens. It pursues a broad concept of
                                                             innovation, involving all actors and all regions in the innovation cycle in order to: make Europe
                                                             into a world-class science performer; revolutionize the way public and private sectors work
                                                             together, notably through Innovation Partnerships; and remove bottlenecks – like expensive
                                                             patenting, market fragmentation, slow standard setting and skill shortages - that currently
                                                             prevent ideas getting quickly to market.

                                                             Member States
                                                             AT: financing to R&D and clusters: Austrian Centre for Industrial Biotechnology56; Action Plan
                                                             on Nanotechnology;

                                                             BE: fiscal benefits for innovation, patents, R&D

                                                             ES: Innpacto, financial support to cooperative projects to promote cooperation between
                                                             enterprises and R&D public agents57; Programme to foster competitiveness of strategic
                                                             industries (chemical industry included);



 55
      http://ec.europa.eu/research/innovation-union/index_en.cfm
 56
      http://www.a-b.tugraz.at/ACIB/index_en.htm
 57
      http://www.micinn.es/portal/site/MICINN/menuitem.dbc68b34d11ccbd5d52ffeb801432ea0/?vgnextoid=6ad81bb06b598210VgnVCM1000001d04140aRCRD



EN                                                                       17                                                                         EN
                                                                  FI: National Innovation Strategy58 sets the political framework; Finnish Funding Agency for
                                                                  Technology and Innovation59 and Academy of Finland60 most important financing bodies;
                                                                  Strategic Centres for Science, Technology and Innovation61 public-private partnerships for
                                                                  speeding up innovation processes.

                                                                  IT: FIT REACH: in March 2009, the Ministry of Economic Development launched a tender of
                                                                  the Technological Innovation Fund, to support projects of experimental development, including
                                                                  a smaller part of industrial research, concerning product and/or process innovation aimed at
                                                                  substituting or eliminating Substances of Very High Concern, as defined in the REACH
                                                                  Regulation. Companies, predominantly downstream users, submitted 136 project proposals
                                                                  totalling about 150 million € and mainly focussing on chromium, formaldehyde and phenol free
                                                                  leather applications and PFOA and PFOS free applications in the textile industry. Through the
                                                                  same Fund, the Ministry of Economic Development launched another tender in July 2009 in
                                                                  order to finance (with both grants and loans) projects of experimental development for product
                                                                  and/or process innovation by medium and high-tech start ups including also in the chemicals
                                                                  sector.

                                                                  IT: RIDITT62: the Italian Ministry of Economic Development has been funding and promoting
                                                                  since 2003 the RIDITT Programme, an initiative aimed at improving the competitiveness of the
                                                                  national productive system by strengthening and integrating the available supply of services for
                                                                  innovation. RIDITT has several actions lines such as information services, technical assistance,
                                                                  training services, funds for technology incubators and funds to promote the vertical (along the
                                                                  value chain) and horizontal (technological) clustering of industrial association and technology
                                                                  centres to develop research, development or innovation projects. From 2007 to 2010 RIDITT
                                                                  has been further strengthened by enhancing technology transfer from the research system to
                                                                  enterprises and supporting the setting up of high technology enterprises.



 58
      http://www.tem.fi
 59
      http://www.tekes.fi
 60
      http://www.aka.fi
 61
      http://www.tekes.fi/en/community/Strategic0Centres0for0Science_0Technology0and0Innovation/360/Strategic0Centres0for0Science_0Technology0and0Innovation/1296
 62
      http://www.riditt.it/



EN                                                                             18                                                                                   EN
                                                                   NL: TASC - Technology Areas for Sustainable Chemistry: R&D programme on catalysis and
                                                                   sustainable processes.

                                                                   PT: Fundação para a Ciência e Tecnologia63 (FCT) supports R&D activities in all fields;
                                                                   involved in pilot project with the International Union for Pure and Applied Chemistry (IUPAC)
                                                                   for transcontinental research; Operational Programme for Competitiveness Factors provides a
                                                                   range of incentives to private investment; Competitiveness and Technology Centre (PCT) for the
                                                                   Refining, Petrochemical and Industrial Chemicals Industries (with Associação das Indústrias da
                                                                   Petroquímica, Química e Refinação)

                                                                   UK: Chemistry Innovation KTN64 (provides a national focus and stimulus to drive improved
                                                                   innovation performance across the UK chemistry-using industries) National Composites
                                                                   Centre65 (part of the 2009 UK Government “Composites Strategy” and brings together
                                                                   companies and enterprising academics to develop new technologies for the design and rapid
                                                                   manufacture of high-quality composite products) Nanotechnology Strategy for the UK66 (the UK
                                                                   Government supports innovation and promotion of the use of these technologies in a safe,
                                                                   responsible and sustainable way reflecting the needs of the public, industry and academia. It.
                                                                   published in 2010 “UK Nanotechnologies Strategy: Small Technologies, Great Opportunities”
                                                                   identifying a number of actions under four categories: Business, Industry and Innovation;
                                                                   Environmental, Health and Safety Research; Regulation; The Wider World).

                                                                   Regions
                                                                   Innovation through Collaboration67 (Scotland). Developed by Scottish Enterprise, the
                                                                   Innovation through Collaboration (ITC) project specifically supports the chemicals sciences
                                                                   sector. The ITC project supported the facilitation of collaborative research and development
                                                                   projects to offer growth potential for Scottish companies. New product and market opportunities
                                                                   were explored based around equipment/skills/knowledge available within the Scottish company


 63
      http://alfa.fct.mctes.pt/index.phtml.en
 64
      https://ktn.innovateuk.org/web/chemistryinnovationktn/overview
 65
      http://www.nationalcompositescentre.co.uk/
 66
      http://www.bis.gov.uk/assets/bispartners/goscience/docs/u/10-825-uk-nanotechnologies-strategy
 67
      http://www.scottish-enterprise.com/grow-your-business/develop-your-business/~/media/publications/Develop%20your%20business/growing_innovation1.ashx



EN                                                                              19                                                                          EN
                                                                     base and/or Higher Education. The project was evaluated in 2009 and this indicated considerable
                                                                     success in encouraging collaboration with 58 connections made and under development, 20
                                                                     Innovation audits carried out, and 3 large scale projects in progress to date .This has as resulted
                                                                     in a new revised programme being developed for and with Industry to ensure collaborative
                                                                     development projects can continue to be facilitated and grown. It is anticipated this will be
                                                                     launched early in 2011.

                                                                     Project Crystal (Scotland): aims to establish a world leading, industry led Centre of Excellence
                                                                     (named CMAC, Continuous Manufacturing and Crystallisation Centre) dedicated to the creation
                                                                     and delivery of market driven expertise in continuous manufacturing and crystallisation. It is
                                                                     aimed primarily at application in the pharmaceutical, fine-chemicals and high tech consumer
                                                                     products fields. The Centre will bring together academic excellence in fundamental and applied
                                                                     research, supply chain technology innovators and a variety of end-users, to create breakthrough
                                                                     continuous manufacturing platforms.

                                                                     Proof of Concept Programme68: refer to recommendation 3 for more information.

                                                                     Centre for Process Innovation69 (North East England). It is a technology innovation centre that
                                                                     uses market knowledge and technology understanding to develop and prototype products and
                                                                     processes quickly and efficiently with minimal risk to its public and private sector partners. CPI
                                                                     works in the innovation space between the discovery of an idea and the delivery of a product or
                                                                     service to the commercial market. It has far outgrown its regional beginnings and has created a
                                                                     national and international reputation in two main technology areas one of which is Advanced
                                                                     Manufacturing for the Process Industries. CPI develops advanced manufacturing technologies
                                                                     for high value chemicals, carbon capture and pharmaceuticals. This business unit is home to the
                                                                     National Industrial Biotechnology Facility (NIBF).

                                                                     Plan Marshall 2.Vert70: 6th Competitiveness Pole Environmental Technologies71 (Wallonie). It
                                                                     aims at consolidating scientific research in cooperation with the governments of Région de

 68
      http://www.scottish-enterprise.com/proofofconcept
 69
      http://www.uk-cpi.com/
 70
      http://planmarshall2vert.wallonie.be/
 71
      http://economie.wallonie.be/competitiveness/Competitiveness-policy.htm



EN                                                                              20                                                                            EN
                                       Bruxelles-Capitale and of the Fédération Wallonie-Bruxelles. One of the envisaged actions is
                                       WILL (Walloon Institute for Leadership in Life Sciences).

                                       Science4Life Venture Cup72: support to start ups (Hesse). Science4Life has been running since
                                       1998. It is an association initiated and supported by the government of Hesse, the company
                                       Sanofi-Aventis and about 100 other companies and institutions, forming a network of expertise
                                       from all over Germany. Next to providing information and seminars helpful for start ups it
                                       organizes a yearly competition in which start ups and young entrepreneurs are awarded fo.r their
                                       innovative business ideas in the field of life sciences and chemistry. The goal of the project is to
                                       get young entrepreneurs together with experts and so help to transform new ideas into successful
                                       new companies.

                                       Alliance Hessen-Nanotech73 (Hesse): The alliance Hessen-Nanotech of the Hessian Ministry of
                                       Economy is the regional platform for communication and cooperation in order to strengthen the
                                       innovation capabilities of the Hessian companies in this sector. Activities include the provision
                                       of information on current developments in the field of nanotechnology, brochures and seminars
                                       and workshops. For companies and universities, the platform offers free marketing, the
                                       participation of experts in events, congresses and fairs, and free initial advice including the
                                       search for partners for cooperation. Hessen-Nanotech also supports different clusters and co-
                                       operations, such as the Hessian NanoNetwork in which five universities and five universities of
                                       applied sciences are working together.

                                       FISCH - Flemish Strategic Initiative for Sustainable Chemistry (now SusChem Flanders -
                                       Flanders) targets the creation of a Flemish platform for sustainable chemistry, where small,
                                       medium and large companies, associations, knowledge centres, service provides, authorities and
                                       investment companies co-operate in an open way on experiments, programmes and projects
                                       related to sustainable chemistry.




 72
      http://www.science4life.de/
 73
      http://www.hessen-nanotech.de/



EN                                                 21                                                                            EN
      6 The chemicals industry needs to develop a more      Member States
        effective dialogue with society based on mutual     ES: Forum on Chemistry and Society (established 2005) to establish a permanent dialogue
        understanding and trust                             between chemical stakeholders and society74; Chemicals Day: 8 editions so far, to promote and
                                                            raise awareness about chemicals75.

                                                            UK Chemicals Stakeholders Forum76: wide range of stakeholders with different interests come
                                                            together to explore views on the chemicals industry and provide advice to the government on
                                                            how the industry should reduce the risks from hazardous chemicals to the environment and to
                                                            human health through the environment. The Forum operates in an open and transparent manner
                                                            while respecting the need to protect commercially sensitive information provided to it.

                                                            Industry
                                                            “Chemistry is everywhere” to promote the positive image of the chemical industry in the
                                                            Netherlands (Netherlands Chemical Industry Association - VNCI)77

                                                            NanoDialogue: Enhancing dialogue on Nanotechnologies and Nanosciences in society at
                                                            European level One: co-funded by the EU under FP6 involving 8 countries78.

                                                            The International Council of Chemical Associations (ICCA) set up a portal for global chemicals
                                                            safety information, providing free public access to safety and health information on chemical
                                                            substances79.

      7 The Commission and Member States are                European Union
        encouraged to continue their efforts to reach       Continue negotiations on a unified patent via enhanced cooperation.
        agreement on the creation of a Community patent
        and a common jurisdictional framework within


 74
         http://www.quimicaysociedad.org/
 75
         http://www.quimicaysociedad.org/dia_quimica.php
 76
         http://www.defra.gov.uk/environment/quality/chemicals/csf/index.htm
 77
         http://www.chemieisoveral.nl/
 78
         http://cordis.europa.eu/fetch?CALLER=EN_NEWS&ACTION=D&SESSION=&RCN=24075
 79
         http://www.icca-chem.org/en/Home/ICCA-initiatives/Global-product-strategy/



EN                                                                     22                                                                        EN
        which European and Community patents can be                    At the end of 2010, a Commission proposal for a language regime (“Proposal for a Council
        enforced.                                                      Regulation on the translation arrangements for the European Union patent” (COM(2010) 350
                                                                       final)”80) was not supported by all Member States, even with further compromises suggested by
                                                                       the Belgian EU presidency. Council therefore concluded that negotiations on an EU patent had
                                                                       failed to reach agreement. As a result, a group of Member States requested the Commission to
                                                                       prepare a proposal for working towards a unified patent system via enhanced cooperation, which
                                                                       would enable a smaller group of Member States to reach agreement of a unified patent with
                                                                       smaller coverage81 82. This process would be open to all Member States who wished to participate.
                                                                       Council will take a Decision on the process in early 2011.

      8 The Commission and Member States should                        European Union
        pursue international patent law harmonisation                  Ongoing discussions at OECD level and within IP5 (EU, US, Japan, China, Korea); US is
        through the World Intellectual Property                        revising its patent legislation, which could facilitate harmonisation.
        Organisation (WIPO) and initiatives such as the
        Transatlantic Economic Council (TEC).

      9 The Commission and Member States should                        European Union
        recognise the protection of confidential business              “Best Practice Project: Strengthening the IPR Enforcement of EU Industry and SMEs” (DG
        information as an important IPR and ensure that                ENTR, 2009): the project has drawn on the knowledge and experience of a broadly based group
        the proportionality principle is systematically                of experts on the management of intellectual property rights. The aim of the IPR Enforcement
        applied when striking the balance between the                  project, then, has been to help SMEs enforce their intellectual property rights by improving the
        legitimate protection of confidential business                 support that is available to them. This Report gives nine clear messages to policy makers and
        information and other policy objectives, such as               business support organisations to improve the way SMEs should enforce their intellectual
        the right to know, transparency and access to                  property rights. Moreover it provides also an overview of the relationship between the Key
        documents, as has been done, for example, in the               Messages and the corresponding Recommendations and Case Studies83.
        Aarhus Convention. Awareness of this IPR should
        be emphasised by relevant industry associations in             Regulation (EC) No 1907/2006 on REACH: protection of sensitive information is regulated in
        their information activities to members and by the


 80
         http://ec.europa.eu/governance/impact/ia_carried_out/docs/ia_2010/com_2010_0350_en.pdf
 81
         Press release on enhanced cooperation: http://europa.eu/rapid/pressReleasesAction.do?reference=IP/10/1714&format=HTML&aged=0&language=EN&guiLanguage=en
 82
         Commission proposal for a Council Decision authorising enhanced cooperation: http://ec.europa.eu/internal_market/indprop/docs/patent/COM(2010)790-final_en.pdf
 83
         http://www.innovaccess.eu/enforcement_best_practices.html



EN                                                                                  23                                                                                    EN
      Commission and Member states when developing                  Articles 118 and 119. The European Chemicals Agency (ECHA) is required to publish
      innovation policies relevant to SMEs.                         information it holds on registered substances on the internet, except in some cases where such
                                                                    information can be regarded as confidential. If the registrant submitting the information also
                                                                    submits a justification as to why publishing the information would be potentially harmful to its
                                                                    commercial interests the information may be withheld. The justifications will be assessed by
                                                                    ECHA that has produced a manual on the content and assessments of such confidentiality
                                                                    claims84. If the justification for keeping the IUPAC name of a substance that fulfils the
                                                                    conditions set out in Article 119 (2) of REACH is accepted, that name will not be made publicly
                                                                    available by ECHA nor will the structural information for that substance. However, an
                                                                    alternative or public name will be available on the ECHA website. This will be in addition to
                                                                    any other substance identifier available (e.g. a registration number). ECHA is preparing a
                                                                    manual to provide rules for registrants on how to generate a public name for most substances.

                                                                    Biocides: in its proposal for a Regulation concerning the placing on the market and use of
                                                                    biocidal products85 of June 2009 the Commission has proposed align the confidentiality
                                                                    provisions with those of REACH.

                                                                    Member States
                                                                    FI: IPR University Centre86: coordination of 5 universities to promote education and research on
                                                                    IPR

                                                                    Industry
                                                                    “Intellectual property, innovation and competitiveness: a manifesto for the chemical industry”87
                                                                    (Cefic). Among others, Cefic calls for the enhancement of the legal protection of confidential
                                                                    business information and trade secrets and to recognise them as important IPRs. Any new
                                                                    chemical legislation should align with REACH on this.



 84
       “Registrants REACH-IT Data Submission Manual - Part 16 - Confidentiality Claims: How to make confidentiality claims, and how to write Art 119(2) confidentiality claim
       justifications” http://echa.europa.eu/doc/reachit/dsm_16_confidentiality_claims.pdf
 85
       Proposal for a Regulation of the European Parliament and of the Council concerning the placing on the market and use of biocidal products COM/2009/267 final
 86
       http://www.iprinfo.fi
 87
       http://www.cefic.org/files/downloads/IPR-Manifesto-Final-23September08.pdf



EN                                                                               24                                                                                   EN
      10 The Commission and all players involved in the                       European Union
         fight against counterfeiting and product piracy in                   Communication from the Commission “An Industrial Property Rights Strategy for Europe”
         Member States, including European industry,                          COM(2008)465 final88. In July 2008, the Commission adopted a Communication on an
         should cooperate to facilitate investigations and                    industrial property rights strategy for Europe which outlines actions to ensure Europe has a high
         conduct strong enforcement activity against                          quality industrial property rights system in the years to come. The Communication provides a
         counterfeiters in Europe and elsewhere in the                        horizontal strategy across the spectrum of different industrial property rights and includes
         world, and develop public educational initiatives.                   initiatives on enforcement, innovation support for small and medium-sized enterprises, and the
                                                                              quality of industrial property rights. It complements the 2007 Communication on the patent
                                                                              system, which set out a way forward towards the adoption of a Community patent and an
                                                                              integrated EU-wide jurisdiction for patents.

                                                                              Communication from the Commission “Enhancing the enforcement of intellectual property rights
                                                                              in the internal market”, COM(2009)467 final89. The European Commission adopted the
                                                                              Communication on enhancing the enforcement of intellectual property rights in the internal
                                                                              market to set out a series of practical initiatives to respond to the dramatic and damaging effect
                                                                              that counterfeiting and piracy is having on EU economies and on society in general. The
                                                                              Commission proposes to complement the existing legal framework by more focused enforcement
                                                                              through greater collaboration between the private sector, national authorities and consumers,
                                                                              throughout the internal market. Following this Communication, the Commission has set up the
                                                                              European Observatory on Counterfeiting and Piracy.

                                                                              The Anti-Counterfeiting Trade Agreement90 (ACTA) is a proposed plurilateral agreement for the
                                                                              purpose of establishing international standards on intellectual property rights enforcement. ACTA
                                                                              would establish a new international legal framework that countries can join on a voluntary basis
                                                                              and would create its own governing body outside existing international institutions such as the
                                                                              World Trade Organization (WTO), the World Intellectual Property Organization (WIPO) or the
                                                                              United Nations. The scope of ACTA includes counterfeit goods, generic medicines and copyright
                                                                              infringement on the Internet. Official negotiations began in June 2008 with the participation of


 88
          http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2008:0465:FIN:en:PDF
 89
          http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2009:0467:FIN:EN:PDF
 90
          http://ec.europa.eu/trade/creating-opportunities/trade-topics/intellectual-property/anti-counterfeiting/



EN                                                                                           25                                                                      EN
                                                                         Australia, Canada, the European Union, Japan, Korea, Mexico, Morocco, New Zealand,
                                                                         Singapore, Switzerland and the United States. The final text of the agreement has been agreed by
                                                                         the Parties in early December 2010. The final text was released in December 201091.


 2.        REGULATION

      11 The Commission should ensure that all relevant                   European Union
         considerations are addressed in impact                           Consistent implementation of the principles of Better Regulation by the Commission – in
         assessments accompanying new legislative                         particular through reinforced rules concerning impact assessments. The Commission has
         proposals. These should include the impact on                    extended the use of impact assessments to ‘Comitology’ proposals with significant impact on
         sustainable development, health, international                   stakeholders. It has introduced an Impact Assessment Board to scrutinise the quality of impact
         competitiveness, SMEs and innovation. Where                      assessments across the Commission.
         appropriate, further research needs should be
         specified.                                                       The Communication "An integrated industrial policy for the globalisation era", a flagship
                                                                          initiative of the Europe 2020 strategy adopted by the European Commission on the 28th of
                                                                          October 2010, foresees both “fitness checks” of existing legislation, to identify the potential for
                                                                          reducing the cumulative effects of legislation so as to cut the costs for businesses in Europe, and
                                                                          an explicit and thorough “competitiveness proofing” of new legislation to properly analyse and
                                                                          take into account the impact on competitiveness of all policy proposals.

      12 The Commission and Member State authorities                      European Union
         should improve communication with industry                       A broad range of support/communication initiatives on REACH, CLP and other legislation
         and other stakeholders to facilitate proper                      concerning chemicals ECHA conducts substantial information activities to improve companies’
         understanding of, and compliance with,                           understanding and compliance with REACH and CLP. An Internet site92, stakeholder events,
         regulatory requirements.                                         webinars and assistance online, a newsletter in 22 languages regularly sent to 10,000
                                                                          subscribers, awareness campaigns, workshops and the publication of ten practical guides to help
                                                                          companies comply with their obligations. The network of the REACH National Help Desk
                                                                          answered in 2009 more than 7.500 inquiries.


 91
          http://trade.ec.europa.eu/doclib/docs/2010/december/tradoc_147079.pdf
 92
          http://echa.europa.eu/help_en.asp



EN                                                                                   26                                                                            EN
      13 The Commission and Member States should aim                European Union
         to avoid unnecessary divergence of rules and               Consistent implementation of the principles of Better Regulation by the Commission – in
         implementation requirements while ensuring                 particular through increased attention to correct transposition and implementation of EU
         correct application of EU rules, in order to               legislation in the Member States, follow-up of complaints by companies and citizens, and
         reduce the administrative burden. Regulation               informal mechanisms such as SOLVIT.
         should form a consistent framework and provide
         a reasonably stable long term perspective.                 A recent example of the attempts to streamline and increase coherence between different pieces
                                                                    of legislation, is the Commission’s proposal to align REACH and RoHS procedures with regard
                                                                    to restricting hazardous substances in the RoHS recast, which has eventually been supported by
                                                                    the Council and the European Parliament. The Commission has launched a study in the
                                                                    preparation of the review by 1 June 2012 as mandated by Article 138 (6) of REACH to assess
                                                                    whether or not to amend the scope of REACH to avoid overlaps with other relevant EU
                                                                    legislation and has invited all stakeholders to contribute93.

                                                                    Member States
                                                                    FR: France has consolidated existing environmental legislation under a unique Code de
                                                                    l’Environnement94.


 3.        HUMAN RESOURCES

      14 Member States should step up promotion of                  European Union
         chemical and science education, starting with              Maths, Sciences and Technology (MST): 19 European countries are participating in a thematic
         primary schools.                                           working group to improve participation in MST studies95

                                                                    Member States
                                                                    DE: BioTechnikum96, intends to act as a platform for information and dialogue and encourage
                                                                    discussion and exchange about biotechnology. It includes an exhibition vehicle moving a

 93
          http://ec.europa.eu/environment/chemicals/reach/review_scope_en.htm
 94
          http://www.legifrance.gouv.fr/affichCode.do?cidTexte=LEGITEXT000006074220
 95
          AT, BE, BG,CY, CZ, DE, DK, EE, ES, IE,LV, MT, NL, NO, PT, SE, SK, TR, UK



EN                                                                              27                                                                       EN
                                                                     chemical lab to offer pupils the opportunity to run scientific tests.

                                                                     ES: Conoce, since 2007 fosters the relationship between enterprises and education, promoting a
                                                                     real vision of chemicals among young people. Joint initiative of the Ministry of Education and
                                                                     FEIQUE ( Federación Empresarial de la Industria Química Española).

                                                                     UK: STEM: education engagement and enrichment activities to inspire young people to choose
                                                                     to study Science, Technology, Engineering and Mathematics. ChemNet97: guide to students into
                                                                     the chemical world (Royal Society of Chemistry).

                                                                     Regions
                                                                     Zukunft durch Innovation (ZDI)98 This Community initiative aims to inspire young people with
                                                                     challenging opportunities to become students of engineering and natural sciences. Children and
                                                                     young people discover and use their technical and scientific talent. ZDI relies on 27 centres with
                                                                     academic and extracurricular offerings in technical and natural sciences, the ZDI-school labs in
                                                                     which students can research and experiment in a professional environment, the ZDI-engineer
                                                                     days when universities and businesses open their doors to students. (North-Rhine Westphalia)

                                                                     Industry
                                                                     Chemistry Box99: teachers training to run chemical experiments + chemical kit (Chemical
                                                                     Industry Association of Hesse)

                                                                     Research Lab for Kids100: everyday’s life chemistry in primary schools (Chemical Industry
                                                                     Association of Hesse)

                                                                     Science Camps101 for kids 6-10 and families (Chemical Industry Association of Hesse)


 96
       http://www.biotechnikum.eu/
 97
       http://www.rsc.org/Membership/Networking/ChemNet/
 98
       http://www.innovation.nrw.de/zdi/index.php
 99
       http://www.vcihessen.de/BildungNetzwerk/Seiten/default.aspx
 100
       http://www.vcihessen.de/BildungNetzwerk/Seiten/default.aspx
 101
       http://www.science-camp.de/



EN                                                                              28                                                                           EN
                                                                    Chemicals Northwest102, the industry-led chemical cluster support organisation in Northwest
                                                                    England, coordinates two programmes that ensure schools can deliver relevant and exciting
                                                                    science teaching, and give children and students an opportunity to visit chemicals companies
                                                                    and see science in action: Primary School Programme – Children Challenging Industry103, that
                                                                    gives to pupils aged 8-11 an opportunity to work with a science advisory teacher in the
                                                                    classroom on practical science investigations set within an industrial context, and Secondary
                                                                    School Programme – Collaboration of Schools and Industry104, that comprises two initiatives -
                                                                    Science for Life and Positive Perceptions of Industry - which aim to improve the image of the
                                                                    industry and assist young people’s education and personal development. Both schemes link
                                                                    secondary schools with local industry.
                                                                    Others
                                                                    IUPAC (International Union of Pure and Applied Chemistry) and UNESCO (United Nations
                                                                    Educational, Scientific and Cultural Organization) declared 2011 the International Year of
                                                                    Chemistry, to increase public appreciation of chemistry, encourage interest in chemistry among
                                                                    young people, generate enthusiasm for the creative future of chemistry and underline the critical
                                                                    role it plays in a sustainable future105.
                                                                    Europe’s Chemistry Societies support many national activities to promote the study of
                                                                    chemistry and to attract more students into the subject. Many societies work closely with
                                                                    national teaching associations to provide support for continuing professional development and
                                                                    the production of high quality educational materials.
                                                                    Xpermania106: is a joint project of the Association of Petrochemicals Producers in Europe107
                                                                    (Appe) and European Schoolnet108. It concentrates on chemistry and physics, to boost young
                                                                    people’s interest in science. It helps students in lower and secondary school classes and their


 102
       http://www.chemicalsnorthwest.org.uk/
 103
       http://www.chemicalsnorthwest.org.uk/key_activities/image/schools_programmes/cci/
 104
       http://www.chemicalsnorthwest.org.uk/key_activities/image/schools_programmes/new-2/
 105
       www.chemistry2011.org/
 106
       http://www.xperimania.net/ww/en/pub/xperimania/homepage.htm
 107
       http://www.petrochemistry.net/
 108
       http://www.eun.org/web/guest;jsessionid=E6312D0A130C2ABBC0186809EFEDE727



EN                                                                               29                                                                        EN
                                                                           teachers to understand the wide variety of applications of petrochemistry and how this relatively
                                                                           new and fascinating science has contributed to the evolution of many day-to-day items. Started
                                                                           in 2007 it has already involved students from 7.000 schools.
       15 Chemistry or/and chemical engineering faculties                  European Union
          should define the profiles of new professions in                 Leonardo da Vinci109: the programme helps to fund thousands of vocational education and
          cooperation with industry.                                       training courses across Europe. Since 1995, the EU has helped more than 600,000 young people
                                                                           to go on training placements abroad. It has also funded 110,000 exchanges for trainers and more
                                                                           than 3,000 projects aimed at modernising the sector. Around 50% of all students in upper
                                                                           secondary education receive vocational education and training.

                                                                           New Skills for New Jobs110 an initiative launched in December 2008, when the Commission set
                                                                           out its priorities, in particular about how to best forecast the needs of tomorrow's labour market
                                                                           and how these needs then can be matched with the skills that people acquire.

                                                                           Skill needs in sectors: the European Centre for the Development of Vocational Training
                                                                           (Cedefop) looks into selected sectors of the economy to identify new and emerging skill
                                                                           needs111.

                                                                           Cedefop Skillsnet network112 welcomes researchers and experts active in early identification of
                                                                           skill needs and forecasting or in the transfer of research results on future skill requirements into
                                                                           policy and practice. Skillsnet members are involved in Cedefop activities related to
                                                                           identification of skill needs (forecasting, employer surveys, sectoral analysis) and receive
                                                                           privileged access to information.

                                                                           "Comprehensive Sectoral Analysis Of Emerging Competences And Economic Activities In The
                                                                           European Union - Chemicals, Pharmaceuticals, Rubber & Plastic Products in the EU " by
                                                                           TNO/ZSI/SEOR, 2009113. The Commission has conducted 18 Sectoral Level Analyses that seek


 109
          http://ec.europa.eu/education/lifelong-learning-programme/doc82_en.htm
 110
          http://ec.europa.eu/education/focus/focus2043_en.htm
 111
          http://www.cedefop.europa.eu/EN/about-cedefop/projects/identifying-skill-needs-in-sectors-and-enterprises/index.aspx
 112
          http://www.cedefop.europa.eu/EN/about-cedefop/networks/skillsnet/index.aspx
 113
          http://ec.europa.eu/social/main.jsp?langId=en&catId=782&newsId=555&furtherNews=yes



EN                                                                                      30                                                                           EN
                                                                    to identify emerging competences and future skills needs. By applying a common foresight
                                                                    scenario-based approach, these studies provide options both for anticipating and adapting to
                                                                    change. The studies cover 18 sectors, including chemicals, pharmaceuticals, rubber and plastic
                                                                    products. The study concludes that the sector’s workforce structurally older than in other sectors
                                                                    poses a potential skills gap. The trend from lower skilled to medium- and high-skilled
                                                                    employment can be observed in the chemicals industry and it is especially pronounced in the
                                                                    technical occupations. This general trend of up-skilling across job functions is bound to
                                                                    continue in the coming years. Across all job functions soft skills will become increasingly
                                                                    important, especially for high skilled professional jobs. Due to the changing nature of jobs,
                                                                    predefined technical knowledge capabilities will become less important. Skills to adapt and
                                                                    learn new competences and life-long learning will be put at a premium.

                                                                    Council Conclusions on "New Skills for New Jobs: the way forward”, June 2010114: The
                                                                    conclusions call on the Commission to propose further steps to develop the "New Skills for
                                                                    New Jobs" initiative and to consider strengthening the role of the EU funding mechanisms in
                                                                    the development of measures to anticipate skills demand and supply. The Council also calls the
                                                                    Commission to improve the analysis of labour market trends and labour market forecasting,
                                                                    develop tools and services that will improve the quality of guidance, promote labour mobility
                                                                    and help to tackle mismatches between supply and demand as regards skills. Examples include
                                                                    the development of a European taxonomy on Skills, Competences and Occupations (ESCO),
                                                                    and the EURES “Match and Map” service.

                                                                    Agenda for new skills and jobs115 is the Commission's contribution to reaching the EU
                                                                    employment rate target for women and men of 75 % for the 20-64 years age group by 2020 and
                                                                    part of the Europe 2020 Strategy. It also highlights the EU's targets to reduce the early school
                                                                    leaving rate to under 10% and increase the number of young people in higher education or
                                                                    equivalent vocational education to at least 40%. To make Europe's labour markets function
                                                                    better the Commission proposes thirteen concrete actions that will help: 1) to step up labour


 114
       http://www.consilium.europa.eu/uedocs/cms_Data/docs/pressdata/en/lsa/114962.pdf
 115
       Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions "An Agenda for
       new skills and jobs: A European contribution towards full employment", COM/2010/0682 final (http://eur-
       lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:0682:FIN:EN:HTML)



EN                                                                               31                                                                                  EN
                                                                       market reform to improve flexibility and security of labour markets ('flexicurity'); 2) to give
                                                                       people and businesses the right incentives to invest in training to continuously upgrade people's
                                                                       skills in line with labour market needs; 3) to ensure decent working conditions while improving
                                                                       the quality of employment legislation; 4) to ensure the right labour market conditions are in
                                                                       place for job creation such as less administrative burdens or lowering the taxes on labour and
                                                                       mobility. The Agenda for New Skills and Jobs complements the Commission's 'Youth on the
                                                                       Move' initiative, which aims to help young people to gain the knowledge, skills and experience
                                                                       they need to make their first job a reality.

                                                                       University-business dialogue and co-operation116 and EU Forum for University Business
                                                                       Dialogue - COM(2009)158117 The European University-Business Forum took place on
                                                                       February 2008, February 2009 and May 2010118. The Commission is considering the
                                                                       development of sectoral approaches, one possibility being chemistry.

                                                                       Higher Education in Europe119. It plays an essential role in society, creating new knowledge,
                                                                       transferring it to students and fostering innovation. The EC has published, as part of the Lisbon
                                                                       Strategy for Growth and Jobs, a modernisation agenda for universities which was welcomed by
                                                                       the Member States and the main stakeholders in higher education. The main fields of reform
                                                                       are: Curricular (the three cycle system bachelor-master-doctorate, competence based learning,
                                                                       flexible learning paths, recognition, mobility); Governance (University autonomy, strategic
                                                                       partnerships, including with enterprises, quality assurance); Funding (Diversified sources of
                                                                       university income better linked to performance, promoting equity, access and efficiency,
                                                                       including the possible role of tuition fees, grants and loans). The European Commission helps
                                                                       EU member states and neighbouring countries in their modernising efforts through policy
                                                                       initiatives, discussion papers and events, as well as through EU programmes promoting mobility
                                                                       in education such as Erasmus, Tempus and Erasmus Mundus.

                                                                       Member States


 116
       http://ec.europa.eu/education/higher-education/doc1261_en.htm
 117
       http://ec.europa.eu/education/higher-education/doc/business/com158_en.pdf
 118
       http://ec.europa.eu/education/higher-education/doc/business/forum2010/report.pdf
 119
       http://ec.europa.eu/education/lifelong-learning-policy/doc62_en.htm



EN                                                                                   32                                                                       EN
                                                                  UK: Higher Education Innovation Fund supports capacity for knowledge exchange;
                                                                  Engineering and Physical Research Council operates in close cooperation with industry;
                                                                  Cogent, Sector Skill Council for the chemical industry.

                                                                  Sector skills councils established in: BE, CZ, ES, FI, FR, UK

                                                                  Regions
                                                                  Science Bazaar (Bavaria). The “science bazaar” has been developed by the Bavarian association
                                                                  of chemical industry VCI as a platform to identify joint needs and activities in chemical
                                                                  research and development of companies and academia. Though cooperation between chemical
                                                                  industry and research in Bavaria is well established, both VCI and Chemie-Cluster Bayern have
                                                                  agreed that a second “science bazaar” would be helpful to see whether there is still a fit between
                                                                  industrial research needs and academic standards in education. Originally planned for 2010, this
                                                                  platform is yet to be discussed and organized in detail.

                                                                  Industry and Academia
                                                                  Doctoral Course in Refining, Petrochemical and Chemical Engineering, launched in 2009 by
                                                                  Industry/Universities (AIPQR – Association of Petrochemical, Chemical and Refining Industries,
                                                                  Portugal)

                                                                  Others
                                                                  European Chemistry Thematic Network Association: Erasmus academic network in the area of
                                                                  chemistry/chemical engineering published, in cooperation with industry (Cefic), a report on the
                                                                  employability of chemistry graduates120.

                                                                  European Chemistry and Chemical Engineering Education project (EC2E2N), supported in
                                                                  2009 through the EU’s Life Long Learning programme, brings together all actors in higher
                                                                  education chemistry and chemical engineering fields in Europe (schools, universities, industries,
                                                                  national chemical societies, accreditation bodies). The project, supported by EuCheMS and


 120
       http://ectn-assoc.cpe.fr/network/wg_pres/ECTN40n_EmployabilityUnivGradChem.htm



EN                                                                            33                                                                          EN
                                                                        Cefic, brings all actors together to collaborate in the development of a knowledge based
                                                                        economy in chemistry and chemical engineering. It increases the attractiveness of studies in
                                                                        chemistry and chemical engineering and helps those involved to develop entrepreneurial
                                                                        skills121.

       16 Industry, in cooperation with education and                   European Union
          employment agencies, should intensify efforts to              " Comprehensive Sectoral Analysis Of Emerging Competences And Economic Activities In The
          assess its human resource requirements in the                 European Union - Chemicals, Pharmaceuticals, Rubber & Plastic Products in the EU "
          short and long term in various locations and                  TNO/ZSI/SEOR (financed by EC) May 2009122. Refer to recommendation 15 for further
          regions and identify probable changes in skill                information.
          profiles.
                                                                        Commission Communication "A new partnership for the modernisation of universities: the EU
                                                                        Forum for University Business Dialogue", COM(2009)158 final, 2 April 2009123: The
                                                                        University-Business Forum, launched on the basis of the Commission communication of 10
                                                                        May 2006 on modernising universities, provides a European platform for dialogue. This
                                                                        communication follows from the forum’s call to improve the links between businesses and
                                                                        universities, with a view to strengthening Europe as a knowledge-based society and aims at:
                                                                        taking stock of challenges and barriers to university-business cooperation, as well as of good
                                                                        practices; proposing future work for the forum; establishing follow-up actions to foster
                                                                        cooperation.

                                                                        “New Skills for New Jobs: Action Now - A report by the Expert Group on New Skills for New
                                                                        Jobs” prepared for the European Commission - February 2010124: the report stresses the need
                                                                        to provide the right incentives for people to upgrade their skills, to better link education, training
                                                                        and work, to develop the right mix of skills, and to better anticipate those skills needed in the
                                                                        future. It calls for action in four main areas: Provide better incentives for employers and
                                                                        individuals to up-skill, and investment in skills must be significant, smart and not just financial;
                                                                        Open up the worlds of education and training by making education and training institutions


 121
          http://ectn-assoc.cpe.fr/network/ectn5_ec2e2n.htm
 122
          http://ec.europa.eu/social/main.jsp?langId=en&catId=782&newsId=555&furtherNews=yes
 123
          http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2009:0158:FIN:EN:PDF
 124
          http://ec.europa.eu/social/main.jsp?catId=88&langId=fr&eventsId=232&furtherEvents=yes



EN                                                                                  34                                                                              EN
                                                               more innovative and responsive to both learners' and employers' needs, and by developing
                                                               relevant qualifications that focus on concrete learning outcomes; Offer a better mix of skills that
                                                               is more suited to labour market needs; Better anticipation of future skill needs. The report is a
                                                               key follow-up to the European Commission's 2008 'New Skills for New Jobs' initiative and was
                                                               presented in February 2010.

                                                               Member States
                                                               Inncorpora, co-financing the cost for companies of hiring graduates and technicians as
                                                               researchers or innovation managers in R&D projects (ES)125

                                                               Regions
                                                               Centres of Industrial Collaboration (CIC’s) based at regional universities (Yorkshire &
                                                               Humber) as part of the national UK initiative Centres of Industrial Collaboration covering
                                                               different technological areas, e.g. polymers126. The CICs created in the Yorkshire & Humber
                                                               region over the last 5 years, hosted in regional universities to provided opportunities to support
                                                               business utilizing university expertise in near market development. In Yorkshire & Humber the
                                                               CICs cover Green Chemistry (York), Particulate Science (Bradford) and Environmental
                                                               Technologies127 (Hull). A REACH training course was set up in 2007 to support expertise
                                                               development to support the introduction of REACH to local industry and SMEs.

                                                               CATCH128 - Centre training environment (Yorkshire & Humber): In 2006 HCF Ltd with its
                                                               local regional network and collaboration partners collected over €10 million to build a new and
                                                               innovative facility (CATCH) which replicates the scale and operating protocols of a real
                                                               chemical manufacturing site. The idea is to train young apprentices (16+) is as real an industrial
                                                               environment as possible. CATCH has been a major local success in the Humber and over 400
                                                               young apprentices have trained on the site. Currently the site is due to expand with a further €8
                                                               million expansion to double the training capacity of the site.


 125
       http://www.micinn.es/portal/site/MICINN/menuitem.dbc68b34d11ccbd5d52ffeb801432ea0/?vgnextoid=9c67aa23df768210VgnVCM1000001d04140aRCRD
 126
       http://www.polycic.com/
 127
       www.etcic.com
 128
       www.catch-uk.org/



EN                                                                        35                                                                            EN
                                                                           Industry
                                                                           CEFIC: Survey on future skills for scientists and engineers129. The survey asked for the first
                                                                           time company Board members to identify their skills needs to implement innovation in the
                                                                           coming years. This “wish list” is currently discussed with the education community and
                                                                           academia to integrate it into higher education curricula and training of existing work force.
                                                                           Based on this survey, issues such as integration of business and related skills in scientific
                                                                           curricula, or multidisciplinary skill base have been addressed in order to ensure innovation can
                                                                           successfully transfer research into real products and processes. The survey highlighted that
                                                                           multidisciplinary broad skills integrating understanding of different scientific and technical
                                                                           disciplines, as well as business and personal skills, will be required to ensure scientists and
                                                                           engineers can successfully transform research results into innovation for the benefit of society.

                                                                           Chemicals Employment Portal, created to receive and manage both job vacancies and demands
                                                                           related to the chemical sector by FEIQUE, the Permanent Chemistry and Society Forum, and
                                                                           the Ministry of Education, Social Policies and Sports of Spain130


 4.         ENERGY AND FEEDSTOCK

       17 In order to support the competitiveness of the
          petrochemicals sector in Europe, measures, such
          as strengthening clusters and improving
          infrastructure, should be taken to consolidate
          existing competitive advantages and secure the
          integration of Europe’s chemicals industry as a
          whole.

       18 Improved      performance of an effectively                     European Union
          liberalised gas market, at least in the Community,              New Regulation on security of gas supply131 focuses on transparency and solidarity, introduces


 129
          http://www.cefic.be/Files/Publications/Skills-for-Innovation-in-the-European-Chemical-Industry-corr.pdf
 130
          http://quimica.laboris.net/



EN                                                                                      36                                                                        EN
       and securing reliable imports of gas at                         obligatory preventive action and emergency plans at national (and/or regional) level, defines
       competitive non-distorted prices are of very high               common standards for security of supply and sets compulsory technical features – such as
       importance for substantial parts of the chemicals               reverse flows – that aim at efficiently mitigating any future shortages at regional level. The
       industry.                                                       Regulation repeals Directive 2004/67/EC.

                                                                       TEN-E: the Commission supports politically and financially, the development of projects of
                                                                       European added value: Out of 32 electricity projects of European interest, 5 have been
                                                                       completely finalised, 3 partly. Of those under construction, 4 have been completed, 5 partly
                                                                       completed. Among the 10 gas projects of European interest, 2 have been completely finalised, 2
                                                                       partly. Of those under construction, 1 has been completed, 2 partly completed

                                                                       Second Strategic Energy Review132 (November 2008) is a forward-looking political agenda to
                                                                       achieve Europe’s core energy objectives of sustainability, competitiveness and security of
                                                                       supply. This agenda means substantial change in Europe's energy system over the next years,
                                                                       with public authorities, energy regulators, infrastructure operators, the energy industry and
                                                                       citizens all actively involved. The European Commission has proposed a wide-ranging energy
                                                                       package that includes: putting forward a new strategy to build up energy solidarity among
                                                                       Member States and a new policy on energy networks to stimulate investment in more efficient,
                                                                       low-carbon energy networks; proposing a Energy Security and Solidarity Action Plan to secure
                                                                       sustainable energy supplies in the EU and looking at the challenges that Europe will face
                                                                       between 2020 and 2050; adopting a package of energy efficiency proposals aims to make energy
                                                                       savings in key areas, such as reinforcing energy efficiency legislation on buildings and energy-
                                                                       using products.

                                                                       European Energy Programme for Recovery133, launched by Regulation 663/2009, is intended to
                                                                       help to speed up and secure investments on infrastructure and technology projects in the energy
                                                                       sector, help to improve the security of supply of the Member States and help to speed up the
                                                                       implementation of the 20/20/20 objectives for 2020. A Report from the Commission to the


 131
       Regulation 994/2010 of the European Parliament and of the Council of 20 October 2010 concerning measures to safeguard security of gas supply and repealing Council Directive
       2004/67/EC, OJ L 295/1, 12.11.2010, http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2010:295:0001:0022:EN:PDF
 132
       http://ec.europa.eu/energy/strategies/2008/2008_11_ser2_en.htm
 133
       http://ec.europa.eu/energy/eepr/index_en.htm



EN                                                                                  37                                                                                      EN
                                                                    Council and the European Parliament on the implementation of the European Energy
                                                                    Programme for Recovery has been published in April 2010134 The Report underlines how the
                                                                    EEPR supports mature projects that, once they are operational, will supply the European Union
                                                                    with about 50 Bcm/y of additional gas from outside Europe entering through the pipelines
                                                                    Nabucco, ITGI-Poseidon, GALSI, and the new liquid natural gas terminals in Poland and
                                                                    Cyprus and help strengthen the European gas pipeline network by developing new
                                                                    interconnections, or reinforcing existing ones, between Portugal / Spain / France (bi-directional),
                                                                    Germany /Belgium / UK (bi-directional), Romania / Bulgaria / Greece / Italy, Slovakia /
                                                                    Hungary (bidirectional)and the Baltic countries / Poland / Denmark / Germany.

                                                                    Internal Energy Market Package135: This package consist of five new legal acts: Directive
                                                                    2009/72/EC concerning common rules for the internal market in electricity and repealing
                                                                    Directive 2003/54/EC; Directive 2009/73/EC concerning common rules for the internal market
                                                                    in natural gas and repealing Directive 2003/55/EC; Regulation (EC) No 713/2009 establishing
                                                                    an Agency for the Cooperation of Energy Regulators; Regulation (EC) No 714/2009 on
                                                                    conditions for access to the network for cross-border exchanges in electricity and repealing
                                                                    Regulation (EC) No 1228/2003; Regulation (EC) No 715/2009 on conditions for access to the
                                                                    natural gas transmission networks and repealing Regulation (EC) No 1775/2005

                                                                    Energy Infrastructure Package136 has the following general objectives: completing the Internal
                                                                    Energy Market; ensuring the development of networks to permit the achievement of the EU's
                                                                    energy and climate objectives; guaranteeing EU security of energy supply, through assistance
                                                                    for key infrastructure projects within and outside the EU.

                                                                    Energy 2020 - A strategy for competitive, sustainable and secure energy137: The Communication
                                                                    defines the energy priorities for the next ten years and sets out the actions to be taken in order to
                                                                    tackle the challenges of saving energy, achieving a market with competitive prizes and secure


 134
       "Report from the Commission to the Council and the European Parliament on the implementation of the European Energy Programme for Recovery" COM(2010)0191,
       27/04/2010 at http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52010DC0191:EN:HTML:NOT
 135
       http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/misc/108740.pdf
 136
       http://ec.europa.eu/governance/impact/planned_ia/docs/19_ener_energy_infrastructure_package_en.pdf
 137
       Communicatio from the Commissione to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions "Energy 2020 -
       A strategy for competitive, sustainable and secure energy" COM(2010)639 - http://www.energy.eu/directives/com-2010-0639.pdf



EN                                                                               38                                                                                  EN
                                                                          supplies, boosting technological leadership, and effectively negotiate with our international
                                                                          partners. On the basis of these priorities and the action presented, the Commission has
                                                                          announced in its Work Programme the intention to present concrete proposals within the next 18
                                                                          months. This communication also sets the agenda for the discussion by Heads of States and
                                                                          Governments at the first EU Summit on Energy on 4 February 2011.

                                                                          On 17 November 2010, the European Commission has adopted the Communication "Energy
                                                                          infrastructure priorities for 2020 and beyond - A Blueprint for an integrated European energy
                                                                          network"138. In the Communication, the Commission defines EU priority corridors for the
                                                                          transport of electricity, gas and oil. A toolbox is also proposed in order to enable a timely
                                                                          implementation of these priority infrastructures.

       19 Due to the long term nature of the high                         European Union
          investments required and the need to achieve                    Second Strategic Energy Review (November 2008)
          high capacity utilisation, stable long term
          electricity supply is a key element of                          European Energy Programme for Recovery
          competitiveness for important parts of the
          chemicals industry. Long term contracts with                    Internal Energy Market Package
          power generators or increased own generation
          in e.g. combined heat and power facilities to                   Energy Infrastructure Package
          cover inherent heat demand are the main
          options

       20 At present, it seems too early to make a robust                 European Union
          assessment of the economic viability of                         “Taking bio-based from promise to market - Measures to promote the market introduction of
          renewable feedstock in the chemicals industry as                innovative bio-based products - A report from the Ad-hoc Advisory Group for Bio-based Products
          a replacement for fossil feedstock, but the                     in the framework of the European Commission’s Lead Market Initiative”, 3 November 2009139. In
          expected significant potential available in the                 2008, the Commission set up an expert group composed of representatives from national
          longer term provides sufficient justification to                governments, industry and academia, entitled the Ad-hoc Advisory Group for Bio-based Products.
          continue research and industrial development                    It has analysed the current market conditions and how the legislative framework affects the

 138
           http://ec.europa.eu/energy/infrastructure/strategy/doc/com(2010)0677_en.pdf
 139
           http://ec.europa.eu/enterprise/sectors/biotechnology/files/docs/bio_based_from_promise_to_market_en.pdf



EN                                                                                      39                                                                     EN
       activities as a priority.                                  introduction of products made from renewable raw material. In November 2009 it delivered a
                                                                  report identifying 44 recommendations to promote bio-based products.

                                                                  Green Public Procurement140 (GPP) is defined as the "process whereby public authorities seek
                                                                  to procure goods, services and works with a reduced environmental impact throughout their life
                                                                  cycle141”. GPP is a voluntary instrument, which means that individual Member States and public
                                                                  authorities can determine the extent to which they implement it. To support the introduction and
                                                                  use of GPP the European Commission published a handbook on environmental public
                                                                  procurement142. The use of renewable raw materials is specially addressed as part of the core
                                                                  and award GPP criteria for e.g. food and catering services143.

                                                                  Standardisation: Mandate 52/2008 for the programming of standards for all types of bio-based
                                                                  products and 53/2008 for the elaboration of pre-standards for bio-lubricants and bio-polymers.
                                                                  The following first standardisation document is available: CEN/TR 15932 "Plastics -
                                                                  Recommendation for terminology and characterisation of biopolymers and bioplastics" already
                                                                  issued. Two more are in the issuing process: Plastics - Determination of the bio-based carbon
                                                                  content and Plastics - Declaration of the bio-based carbon content. The definition of standards
                                                                  will help the development of markets for bio-based products.

                                                                  European ECO-Label: Commission Decision 2005/360/EC on establishing ecological criteria
                                                                  and the related assessment and verification requirements for the award of the Community eco-
                                                                  label to lubricants144. The definition of these criteria will contribute to strengthen the market
                                                                  position of bio-based lubricants.

                                                                  EuroBioRef project145 (European Multilevel Integrated Biorefinery Design for Sustainable
                                                                  Biomass Processing) coordinated by CNRS, France, has been launched in March 2010 and will
                                                                  last 4 years. It is supported by a 23 million euros funding from the EU’s 7th Framework


 140
       http://ec.europa.eu/environment/gpp/index_en.htm
 141
       Communication COM(2008)400 “Public procurement for a better environment”, http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2008:0400:FIN:EN:PDF
 142
       “Buying Green! – A Handbook on environmental public procurement”, http://ec.europa.eu/environment/gpp/pdf/buying_green_handbook_en.pdf
 143
       http://ec.europa.eu/environment/gpp/pdf/toolkit/food_GPP_product_sheet.pdf
 144
       http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2005:118:0026:0034:EN:PDF
 145
       http://eurobioref.org/



EN                                                                             40                                                                                 EN
                                     Program. EuroBioRef will deal with the entire process of transformation of biomass, from fields
                                     to final commercial products. It will involve 28 partners from 14 different countries into a highly
                                     collaborative work. BIOREF-INTEG146 is a “Coordination and Support Action Project” within
                                     the framework of the 7th Framework Program (Theme Energy). The project is funded by the
                                     European Commission from June 2008 until May 2010 and is co-ordinated by the Energy
                                     Research Centre of the Netherlands (ECN). It is supported by a further 12 partners from all over
                                     Europe who vary from SME’S and industrial partners, to Universities and RTD institutes.

                                     Member States

                                     BE-NL: Bio Base Europe: launched in 2009 by Biopark Terneuzen in the Netherlands and
                                     Ghent Bio-energy Valley in Belgium has an overall budget of 21 million Euros and is
                                     financially supported by the European Union, Belgium and the Netherlands within the
                                     framework of an Interreg program. It will set up a Bio Base Europe Pilot Plant (operational mid-
                                     2010) in Ghent and will scale up and optimise biobased processes to prepare them for industrial
                                     applications. It will serve as an open innovation centre for commercial companies and research
                                     institutes looking to develop new biobased activities. It will also create a Bio Base Europe
                                     Training Centre in Terneuzen, which will help to address the industry-wide shortage of skilled
                                     process operators and technical maintenance specialists for biobased industries. The new
                                     training facility will be fully operational in 2011.
                                     DE: the Chemical-Biotechnology Process Development Center (CBP) Leuna is a 50 million
                                     euros project launched in 2010 and supported by the German federal Ministry for Education and
                                     Research, Ministry of Food, Agriculture and Consumer Protection, Federal Ministry of
                                     Environment and the state government of Saxony-Anhalt. It will set up the world’s first
                                     lignocellulose biorefinery for the production of chemicals, fuels, electricity and heat, at the
                                     Leuna chemical location in Saxony-Anhalt. It is planned to complete the construction of the
                                     refinery by 2012. Researchers at CBP will focus on scale up from the laboratory the processes
                                     that transform biomass from many different sources into chemical materials.
                                     DK: Inbicon Biomass Refinery at Kalundborg. The total cost of the investment (54 million
                                     euros) has been supported by European funds (9 million euros for demonstration under the 7th


 146
       http://www.bioref-integ.eu/



EN                                              41                                                                            EN
                                                                      Framework Programme) and by the Danish Energy Technology Development and
                                                                      Demonstration Programme (EUDP, 10 million euros). The plant currently produces 1.4 million
                                                                      gallons of cellulosic ethanol, 14,333 tons of lignin pellets and 12,128 tons of C5 molasses.
                                                                      FI: BioRefine 2007-12: this programme is managed by Tekes, the Finnish Funding Agency for
                                                                      Technology and Innovation, opens up international opportunities for top-level Finnish expertise,
                                                                      based especially on the forest and energy industries. Multilateral and bilateral collaboration are
                                                                      key factors in developing innovative biomass-based products, technologies, and services. It has
                                                                      a budget of 137m€ on biomass processing and biorefinery

                                                                      NL: BE-Basic Bioprocess Pilot Facility147. The European Regional Development Fund, the
                                                                      Ministries of Agriculture, Nature & Food Quality and Economic Affairs, the Province of South
                                                                      Holland and the Municipalities of Rotterdam, Delft and The Hague, knowledge institutions and
                                                                      industry have planned a mutual investment of more than 100 million euros in a pilot facility in
                                                                      Delft. This will enable companies and knowledge institutions to scale up from laboratory to
                                                                      industrial scale, a step that represents a bottleneck when it comes to converting bio-based
                                                                      residues such as agricultural waste into raw materials for building materials, chemical and
                                                                      pharmaceutical products and biofuels.

                                                                      Regions
                                                                      Study on current/future capability in industrial biotechnologies, linked to BioChem project
                                                                      managed by Chemistry Innovation (Scotland).

       21 Incentives    (e.g. subsidies or regulation) in             European Union
          agriculture or energy policy can seriously                  In the Renewable Energy Directive of 2009148 the impact of incentives on specific uses of
          jeopardise attractive established uses of bio-based         renewable raw materials on other applications has been taken into account. Article 23 lays down
          raw materials in the chemicals industry by                  that “[..] the Commission shall report every two years to the European Parliament and the
          favouring other applications (e.g. threat to tallow         Council. The first report shall be submitted in 2012. [..] In its reports, the Commission shall, in
          availability as feedstock for the detergent industry


 147
           http://www.be-basic.org/
 148
           Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and
           subsequently repealing Directives 2001/77/EC and 2003/30/EC (http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32009L0028:EN:NOT)



EN                                                                                 42                                                                                EN
          due to higher subsidies for bio-fuel use). Policy particular, analyse: [..] the impact of increased demand for biomass on biomass using sectors”.
          makers at European, national and local level,
          should seek to avoid such unwanted side effects.


 5.         CLIMATE CHANGE POLICY

       22 Action on climate change provides significant                European Union
          business opportunities for the European                      Europe 2020 Strategy149: one of the seven Flagship Initiatives is devoted to establish a
          chemicals industry. At the same time, it will                “Resource efficient Europe” to help decouple economic growth from the use of resources,
          remain an important research and development                 support the shift towards a low carbon economy, increase the use of renewable energy sources,
          focus in chemistry. This potential should be fully           modernise our transport sector and promote energy efficiency. The chemical industry can play a
          exploited.                                                   major role in its implementation.

                                                                       Key Enabling Technologies (KETs)150: the Commission identified the KETs that strengthen the
                                                                       EU’s industrial and innovation capacity to address the societal challenges ahead and proposed a
                                                                       set of measures to improve the related framework conditions as part of the development of EU
                                                                       industrial and innovation policy. The Communication set up a high-level expert group tasked
                                                                       with developing a shared longer term strategy and action plan on the identified KETs. This
                                                                       group started its work on July 2010 and has a mandate for one year. The Communication is
                                                                       complemented by the Staff Working Document151 that explains why advanced materials,
                                                                       nanotechnology, micro- and nano-electronics, biotechnology and photonics have been identified
                                                                       as Key Enabling Technologies for improving European industrial competitiveness.

                                                                       Industry



 149
          “Europe 2020 – A European strategy for smart, sustainable and inclusive growth”
          http://ec.europa.eu/eu2020/pdf/COMPLET%20EN%20BARROSO%20%20%20007%20-%20Europe%202020%20-%20EN%20version.pdf
 150
          Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions "Preparing for
          our future: Developing a common strategy for key enabling technologies in the EU" COM(2009) 512 final
          (http://ec.europa.eu/enterprise/sectors/ict/files/communication_key_enabling_technologies_sec1257_en.pdf)
 151
          "Current situation of key enabling technologies in Europe" SEC(2009)1257,
          http://ec.europa.eu/enterprise/sectors/ict/files/staff_working_document_sec512_key_enabling_technologies_en.pdf



EN                                                                                  43                                                                                  EN
                                                                        CARE+: a European project – co-financed by the programme Intelligent Energy for Europe - to
                                                                        help small and medium sized enterprises in the chemical industry to realize energy savings and
                                                                        improve energy efficiency. First target countries are Bulgaria, Italy and Poland. Main
                                                                        instruments developed are an Energy Management Best Practice Manual and a Self Audit
                                                                        Guide152.

       23 As the chemicals industry is truly globalised,                European Union
          adequate measurable action by emerging                        Communication from the Commission “International climate policy post-Copenhagen: Acting
          economies is needed to mitigate climate change.               now to reinvigorate global action on climate change” COM(2010) 86 final153.
          This would contribute to creating a more level
          playing field, allowing the European chemicals                The Commission published a post-Copenhagen communication in March 2010 setting out a
          industry to compete. Europe should do its utmost              strategy to help maintain the momentum of global efforts to tackle climate change. In May 2010,
          to create the conditions for such action.                     the Commission published a communication revising the assessment of the costs of the 20%
                                                                        target, giving an estimation of the costs of moving to 30% and analysing the options to do so154.

                                                                        The Environment Council, on October 14, 2010, adopted conclusions on the EU position for the
                                                                        Cancún climate conference. The EU expects the meeting to adopt a balanced set of decisions
                                                                        that contribute to establishing an international regime to protect the climate after 2012. The
                                                                        Council reiterated its preference that this should take the form of a single legally binding
                                                                        instrument. At the same time, it confirmed its willingness to consider a second commitment
                                                                        period under the Kyoto Protocol if this were part of a wider outcome including the perspective
                                                                        of a global framework engaging all major economies.

       24 In view of the complexity of sectoral agreements              European Union
          in the chemicals industry, support by all actors              Global sectoral study: final report155 published in 2010 to provide a "proof -of-concept" of the
          (industry, governments, including those of                    feasibility of sectoral approaches in a post -2012 international framework for climate policy. The

 152
           http://www.cefic.be/en/careplus.html
 153
           http://ec.europa.eu/environment/climat/pdf/com_2010_86.pdf
 154
           "Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Analysis of
           options to move beyond 20% greenhouse gas emission reductions and assessing the risk of carbon leakage", 26.5.2010, COM(2010) 265 final;
           http://register.consilium.europa.eu/pdf/en/10/st10/st10230.en10.pdf
 155
           http://ec.europa.eu/enterprise/policies/sustainable-business/climate-change/sectoral-approaches/files/global_sectoral_study_final_report_en.pdf



EN                                                                                  44                                                                                  EN
         emerging countries, and the Commission) to                   study initially investigated a transnational approach in which all countries face similar
         bring these initiatives to a successful conclusion in        benchmarks, a sectoral CDM approach emphasizing carbon credits, and a bottom-up approach
         as many subsectors of the chemicals industry as              envisaging financial and technology assistance from advanced economies to support ambitious
         possible is to be welcomed.                                  no–lose crediting baselines in developing countries. In “Sectoral Approaches,” developing
                                                                      countries undertake efforts to reduce Green House Gases emissions intensity or growth in key
                                                                      economic sectors with assistance from advanced economy countries. Sector programs offer a
                                                                      promising avenue for scaling up emission reductions in developing countries and the transfer of
                                                                      financial and technology assistance from advanced economy countries.

                                                                      Industry

                                                                      In the course of 2009, the chemical industry started an attempt to develop a cross-sectoral
                                                                      approach at international level via the International Council of Chemical Associations (ICCA),
                                                                      which was eventually not successful in the absence of an international political agreement at the
                                                                      Copenhagen conference.

       25 Robust  and verifiable information on the                   European Union
         emissions and the emission reduction potential of            Commission Decision of 24 December 2009 determining, pursuant to Directive 2003/87/EC of
         the chemicals industry is crucial for decisions on           the European Parliament and of the Council, a list of sectors and subsectors which are deemed to
         measures to mitigate climate change and for                  be exposed to a significant risk of carbon leakage 156.
         setting    benchmarks        for    the     future
         implementation of the European emissions                     In line with the provisions of the ETS Directive, large parts of the chemicals industry are
         trading system. Closure of the current                       deemed to be exposed to a significant risk of carbon leakage.
         information gap is of the utmost priority.
                                                                      On the basis of a thorough evaluation of emission and production data, the Commission has
                                                                      presented a draft Decision determining transitional Union-wide rules for the harmonised free
                                                                      allocation of emission allowances pursuant to Article 10a of Directive 2003/87/EC, including
                                                                      benchmarks for 15 chemical products in a manner that sets an incentive for further reduction of
                                                                      GHG emissions while providing for the necessary free allocation of emission allowances to
                                                                      avoid carbon leakage. Extensive work to define benchmarks has been carried out by the
                                                                      Commission, in cooperation with industry and member states. The Draft Commission Decision


 156
          http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2010:001:0010:0018:EN:PDF



EN                                                                                 45                                                                        EN
                                                                     on free allocation rules in ETS as of 2013 has been approved by the Member States in the
                                                                     Climate Change Committee and submitted to the European Parliament and the Council for a
                                                                     three month scrutiny period before its final adoption expected for April 2011157.
                                                                     Industry
                                                                     Cefic coordinated a global study on carbon life cycle assessment and is currently participated in
                                                                     a technology roadmap project highlighting the significant contribution of the chemicals industry
                                                                     to global energy and climate challenges, in cooperation with IEA and ICCA (to be published in
                                                                     2011)158.

                                                                     The chemical industry worked closely with the Commission in the crucial phase of the definition
                                                                     of Union-wide implementing measures to be set under the revised ETS directive. Extensive data
                                                                     collection on GHG emissions and efficiency performance has been made through European
                                                                     industrial organisations. Independent verification of submitted data has been carried out.

       26 Member States and the Commission should make               European Union
          strong efforts for the full implementation of the          Community Union-Wide wide Implementing Measures, in particular the adoption of the list of
          revised ETS Directive within the ambitious                 sectors deemed to be at a significant risk of carbon leakage, and to approval of the establish free
          timelines set and in cooperation with all                  allocation rules and product benchmarks for the chemicals industry159.
          stakeholders.
                                                                     The chemicals industry may also benefit from a major new funding programme for low carbon
                                                                     technologies, the so-called NER 300 programme160 that was launched in November 2010. It aims
                                                                     to co-fund at least 8 carbon capture and storage (CCS) demonstration projects, including on
                                                                     industrial applications, and at least 34 innovative renewable energy technology demonstration
                                                                     projects at commercial scale in the territories of the EU Member States.




 157
          http://ec.europa.eu/clima/policies/ets/benchmarking_en.htm
 158
          http://www.icca-chem.org/ICCADocs/ICCA_A4_LR.pdf
 159
          Same as in note 73
 160
          Commission Decision 2010/670/EU http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2010:290:0039:0048:EN:PDF



EN                                                                                46                                                                        EN
                                                                      Member States
                                                                      UK: Carbon Reduction Commitment Energy Efficiency Scheme 161, Climate Change
                                                                      Agreements162.

                                                                      Regions
                                                                      CO2Sense Ltd created by the regional development agency to support the development of carbon
                                                                      capture technology and deployment across the energy & processes sectors (Yorkshire & Humber).


 6.         LOGISTICS

       27 In many cases the development of local cluster              Regions
          platforms with active cooperation between                   Region cluster organisations for chemicals are developing new Supply Chain Networks to
          industry and (local) public authorities would               support SME logistics and competitive opportunities (Yorkshire & Humber).
          improve their logistical efficiency and overall
          management. A multi-stakeholder approach to                 ChemLog is a European cooperation project between regional authorities, chemical industry
          cluster leadership may enable the development of            associations and scientific institutions from Germany, Poland, Czech Republic, Slovakia,
          long term perspectives and guarantee consistency.           Hungary and Italy with the objective to strengthen competitiveness of the chemical industry by
                                                                      improving framework conditions for supply chain management in Central and Eastern Europe. It
                                                                      aims at overcoming barriers for transnational transport in the West-East and East-West
                                                                      dimension by initiating a broad process of exchange of experience and facilitating the
                                                                      development of transnational infrastructure projects with high relevance for the chemical
                                                                      industry.

                                                                      Logistics in Wallonia163 (Wallonia, Belgium) is the Transport and Logistics Centre of
                                                                      Competence, created to promote the transport and logistics sector of Wallonia both within the
                                                                      country and abroad, by coordinating activities, by defining a common strategy and by



 161
          http://www.decc.gov.uk/en/content/cms/what_we_do/lc_uk/crc/crc.aspx
 162
          http://www.decc.gov.uk/en/content/cms/what_we_do/change_energy/tackling_clima/ccas/what_are_ccas/what_are_ccas.aspx
 163
          www.logisticsinwallonia.be



EN                                                                                 47                                                                      EN
                                                                   optimising human and technological resources.

                                                                   Flemish Institute for Logistics164 – VIL (Flanders) is a competence centre, ie, a Flemish research
                                                                   institute which helps businesses to implement innovative logistics projects. VIL is an Incubator
                                                                   of innovative state-of-the art logistics concepts and technologies, matches knowledge from
                                                                   research institutes with the business community and develops promotional activities.

       28 Stakeholders    should work together with                European Union
          authorities on a Member State and Community              Communication from the Commission “Freight Transport Logistics Action Plan”
          level to further identify and address key                COM/2007/0607165 is one of a series of policy initiatives jointly launched by the European
          bottlenecks which prevent wider use of                   Commission to improve the efficiency and sustainability of freight transport in Europe It
          intermodal transport.                                    presents a number of short- to medium-term actions that will help Europe address its current and
                                                                   future challenges and ensure a competitive and sustainable freight transport system in Europe.
                                                                   The external dimension of all of these actions will need to be considered with a view to
                                                                   efficiently integrating third countries and in particular neighbouring countries into the logistic
                                                                   chain.

                                                                   "Action Plan for the Deployment of Intelligent Transport Systems in Europe"
                                                                   COM(2008)886166: the Action Plan suggested a number of targeted measures and included the
                                                                   proposal for Directive 2010/40/EU of the European Parliament and of the Council of 7 July
                                                                   2010 on the framework for the deployment of Intelligent Transport Systems in the field of road
                                                                   transport and for interfaces with other modes of transport. The goal is to create the momentum
                                                                   necessary to speed up market penetration of rather mature ITS applications and services in
                                                                   Europe. The initiative is supported by five co-operating Directorates-General: DG Mobility and
                                                                   Transport (lead), DG Information Society and Media, DG Research, DG Enterprise and Industry




 164
          www.vil.be
 165
          http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52007DC0607:EN:NOT
 166
          http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52008DC0886:EN:NOT



EN                                                                             48                                                                          EN
                                                                   and DG Climate Action.

                                                                   “A sustainable future for transport - Towards an integrated, technology-led and user-friendly
                                                                   system” COM(2009) 279167 The Communication is at the same time a strategy document
                                                                   summarises the results of a wide reflection and a consultation document, aiming at identifying
                                                                   policy options to be tested and eventually included in the next Transport White Paper in 2011.

                                                                   Member States
                                                                   NL: The Dutch government has studied all modes of transport (rail, waterways, roads and
                                                                   pipelines) for transporting chemicals, oil and gas. This study has indicated that the transport
                                                                   arrangements for the future must take account the needs of a healthy chemical industry in the
                                                                   Netherlands. In formulating further policies on land use and transportation, this will be taken
                                                                   into consideration.

                                                                   Regions
                                                                   LosamedChem168: 10 partners from all Mediterranean basin (Novara). The project originates
                                                                   from the development of transport of chemicals in the Mediterranean and aims to reach the
                                                                   following main objectives: promote cooperation among chemical districts and between them and
                                                                   the main harbours; improve integration between harbours/hinterlands; sustain intermodality;
                                                                   reinforce the railways/waterways transportation for chemical products; promote a transfer of
                                                                   know-how and safety technologies; harmonize regulations and policies.

       29 National   and European authorities should               European Union
          carefully assess possibilities for revitalising          Communication from the Commission “Freight Transport Logistics Action Plan”
          railway freight transport.                               COM/2007/0607169 is one of a series of policy initiatives jointly launched by the European
                                                                   Commission to improve the efficiency and sustainability of freight transport in Europe It
                                                                   presents a number of short- to medium-term actions that will help Europe address its current and
                                                                   future challenges and ensure a competitive and sustainable freight transport system in Europe.


 167
          http://ec.europa.eu/transport/publications/doc/2009_future_of_transport_en.pdf
 168
          http://www.losamedchem.eu/web/
 169
          http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52007DC0607:EN:NOT



EN                                                                             49                                                                        EN
                                                                   The external dimension of all of these actions will need to be considered with a view to
                                                                   efficiently integrating third countries and in particular neighbouring countries into the logistic
                                                                   chain.

                                                                   Regulation 913/2010 of the European Parliament and of the Council of 22:09/2010 concerning a
                                                                   European rail network for competitive freight COM/2008/0852 final170. The proposal is based
                                                                   on the creation of nine international corridors with three principal objectives in view of a more
                                                                   competitive rail freight with a better quality of services: to strengthen cooperation between rail
                                                                   infrastructure managers; to guarantee to freight trains appropriate treatment in terms of
                                                                   allocation on lines that cater also to passengers trains; to allow the development of
                                                                   multimodality, in particular in ports.

                                                                   Member States
                                                                   ES: interministerial commission and a workgroup, managed by Ministry of Public Works and
                                                                   Ministry of Industry, Tourism and Trade to promote the development of railroad freights and
                                                                   intermodality according to the needs of the chemicals industry171.

       30 Massive congestion of the road network is a              European Union
          major problem for chemical logistics and the             Regulation (EC) No 1072/2009 of the European Parliament and of the Council of 21 October
          Commission’s work in investigating solutions to          2009 on common rules for access to the international road haulage market (Articles 8 and 9
          the problem is strongly supported.                       only)172: intends to simplify and harmonise further the current rules by consolidating and
                                                                   merging previous legislation on access to the road transport market. The main objective is to
                                                                   eliminate legal uncertainty for Community hauliers and adapt legislation to market needs.

                                                                   Study on the Single Wagonload Traffic (2010/11): single wagon load is a flexible system which
                                                                   allows companies to choose how many wagons they want to dispatch instead of running a block




 170
          http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52008PC0852:EN:NOT
 171
          http://www.mityc.es/industria/Observatorios/Paginas/Index.aspx
 172
          http://ec.europa.eu/transport/road/haulage/cabotage_en.htm



EN                                                                              50                                                                         EN
                                                                      train, which greatly increases flexibility.

                                                                      Eurovignette173: Proposal for a Directive of the European Parliament and of the Council
                                                                      amending Directive 1999/62/EC on the charging of heavy goods vehicles for the use of certain
                                                                      infrastructures, COM(2008)436 seeks to amend Directive 1999/62/EC to establish a framework
                                                                      which enables Member States to calculate and vary tolls on the basis of the costs of traffic based
                                                                      pollution and of congestion in a way compatible with the internal market. Such charges will
                                                                      encourage transport operators to use cleaner vehicles, to choose less congested routes, to
                                                                      optimise the loading of their vehicles, and ultimately to make more efficient use of
                                                                      infrastructure.

                                                                      Communication from the Commission "Action Plan for the Deployment of Intelligent Transport
                                                                      Systems in Europe" COM(2008)886174: the Action Plan suggested a number of targeted
                                                                      measures and included the proposal for Directive 2010/40/EU (see next point). The goal is to
                                                                      create the momentum necessary to speed up market penetration of rather mature ITS
                                                                      applications and services in Europe. The initiative is supported by five co-operating
                                                                      Directorates-General: DG Mobility and Transport (lead), DG Information Society and Media,
                                                                      DG Research, DG Enterprise and Industry and DG Climate Action.

                                                                      Directive 2010/40/EU of the European Parliament and of the Council of 7 July 2010 on the
                                                                      framework for the deployment of Intelligent Transport Systems in the field of road transport and
                                                                      for interfaces with other modes of transport 175 The Directive establishes a framework in support
                                                                      of the coordinated and coherent deployment and use of Intelligent Transport Systems (ITS)
                                                                      within the Union, in particular across the borders between the Member States, and sets out the
                                                                      general conditions necessary for that purpose. It provides for the development of specifications
                                                                      for actions within the priority areas, as well as for the development, where appropriate, of
                                                                      necessary standards.




 173
       http://europa.eu/legislation_summaries/internal_market/single_market_for_goods/motor_vehicles/interactions_industry_policies/l24045b_en.htm
 174
       http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52008DC0886:EN:NOT
 175
       http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2010:207:0001:0013:EN:PDF



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       31 The question of closing gaps in the olefin pipeline   European Union
          network and public support for such an initiative     European Energy Programme for Recovery176: refer to recommendation 18 for further
          needs to be pursued in order to establish an          information.
          appropriate basis for decisions on investments
          and political priorities in this field. The High      Regions
          Level Group welcomes the Commission’s 2nd
          Strategic Energy Review which is expected to          Propylen and CO pipelines (under construction in North Rhine Westphalia), ethylene pipeline to
          provide clarification on the way ahead.               connect the northern Germany chemical parks (Schleswig-Holstein)


 7.         GLOBALISATION, INTERNATIONAL COMPETITIVENESS AND TRADE

       32 Notwithstanding the difficulties in reaching an       European Union
          agreement in the framework of the WTO trade           The EU continued its efforts to obtain a deal in the WTO Doha Development Agenda
          negotiations, the multilateral approach towards       negotiations despite the reluctance of some major trading partners. Discussions on the sectoral
          trade liberalisation, currently being pursued         proposal on chemical tariffs and negotiations on Trade Facilitation are ongoing but show only
          through the DDA negotiations, remains the             limited advancement. Adherence to a sectoral tariff liberalization agreement of all major actors
          preferred option. In order to foster increased        of the world chemicals market remains the goal pursued by the EU in the NAMA negotiations.
          competitiveness for the European chemicals
          industry, the EU should therefore continue to         As a follow-up to the HLG work the Commission carried out under the Swedish Presidency of the
          actively pursue an overall NAMA-agreement             Trade Policy Committee carried out a sectoral task within the Trade Policy Committee on
          complemented by an ambitious sectoral                 identifying and discussing main tariff and non-tariff issues faced in trade affairs by the chemicals
          agreement on chemicals. All countries with a          industry, with the help of Member State trade experts. As an outcome, the Committee presented a
          substantial chemicals industry should participate     sectoral fiche taking stock of the discussion, including with regard to key liberalization target
          in this, particularly the emerging economies. The     markets, and relevant non-tariff barriers. The fiche has also outlined specific points for policy
          EU should continue its efforts to conclude an         action,
          agreement on trade facilitation in the framework
          of the WTO and strengthen the Agreement on            A Market Access Working Group (MAWG) on chemicals was set up by the Commission
          Trade-Related Aspects of Intellectual Property

 176
           http://ec.europa.eu/energy/eepr/index_en.htm



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        Rights.                                              following the completion of the sectoral fiche and held its first meeting in March 2010. The
                                                             objective of this MAWG is to identify priority market access barriers specific to the chemical
                                                             sector and to agree on action and strategies to remove them, in line with the spirit of the market
                                                             access strategy as a complementary tool to multilateral and bilateral negotiations. A second
                                                             meeting took place in July 2010, during which a list of priority issues has been identified.

     33 As for new accessions to the WTO, the EU should      European Union
        strive to ensure that trade distorting practices,    The Commission pursues efforts to ensure that distorting practices of new WTO members are
        such as double pricing policies for energy and       effectively addressed.
        feedstock by acceding countries are effectively
        addressed.

     34 The EU should pursue Free Trade Agreements           European Union
        with key trading partners, in particular if these    A new free trade agreement with Korea, which may serve as a model for future, modern FTAs
        are so-called WTO plus agreements that go            has been finalised. It will significantly liberalise access of the EU chemicals industry to its 10 th-
        further in promoting openness and integration        largest individual market
        than is currently the case in the multilateral
        negotiations. The selection of potential FTA         Other ongoing negotiations, notably with Ukraine, India, Canada and Singapore are making
        partners should give priority to economic criteria   progress and negotiations with Mercosur have been reopened.
        with due consideration given to the EU’s Policy
        for Development. The EU should strive for
        consistency between all FTAs and aim to achieve
        conditions comparable to those granted by our
        FTA partner to other key countries. FTAs need
        proper enforcement and balanced and reliable
        dispute settlement procedures.

     35 In the absence of progress in multilateral trade     European Union
        negotiations, there should be no unilateral          The Commission pursued its use of trade defence instruments against violations of anti-duping
        weakening of the current European TDI                and anti-subsidization rules, where justified, for example via anti-dumping measures extended
        legislation and practice. If improvements in         against Ukraine for ammonium nitrate and against the US for ethanolamines at the beginning of
        current practice are considered necessary, these     2010.
        could include: (1) faster implementation of
        provisional measures (six months instead of the


EN                                                                       53                                                                              EN
        current minimum of nine); (2) making disclosure
        of provisional findings mandatory; (3) more
        severity in cases of fraud and circumvention; and
        (4) consolidation of energy and other raw
        materials adjustments, by allowing for
        adjustments in the calculation of the ‘normal’
        price to tackle dual pricing.

     36 In the WTO, the EU should seek to ensure            European Union
        stringent common rules leading to a global level    The EU continued its efforts to obtain a deal in the WTO Doha Development Agenda
        playing field with an alignment of anti-dumping     negotiations, which could also translate in enhanced rules on trade defence. However, progress
        practices. TDIs will continue to be needed to       in these talks has been so far limited.
        offset the impact of unfair trade practices. This
        includes measures to tackle double pricing and
        below-cost pricing. However, a realistic and
        balanced approach should be followed and it
        must be recognised that TDIs are part of a wider
        package being negotiated within the WTO.

     37 The EU should continue to strive for more global    European Union
        harmonisation in customs procedures within the      Customs-related problems and issues faced by EU operators in Russia and Ukraine are regularly
        relevant international organisations such as the    raised in for a such as the EU-Russia and EU-Ukraine Sub-Committees on Customs and Border
        World Customs Organisation and the WTO. This        Cooperation and the EU-Russia Working Group on Customs Border Issues.
        will enhance the fight against black and grey
        customs clearance schemes which are currently a     In the EU-Russia Industrial and Enterprise Policy Dialogue, the subgroup on chemicals kept on
        major problem for chemicals exporters and           raising the most relevant industry concerns on custom organisation and procedures.
        traders to some countries, such as Russia. The EU
        should further pursue multilateral and bilateral
        cooperation between customs authorities and
        governmental dialogue as ways to counter illegal
        activities.




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       38 The    EU should continue to promote the                             European Union
          development of permanent new WTO rules                               In 2008 the European Commission adopted a new integrated strategy – the Raw Materials
          addressing trade problems related to the                             Initiative177 - which sets out targeted measures to secure and improve access to raw materials for
          discriminatory supply of raw materials. In                           the EU based on three pillars: ensure access to raw materials from international markets under
          bilateral trade negotiations, the EU should                          the same conditions as other industrial competitors; set the right framework conditions within
          continue to address trade and subsidy distortions                    the EU in order to foster sustainable supply from European sources; and boost overall resource
          that cause problems in accessing raw materials.                      efficiency and promote recycling to reduce the EU's consumption of primary raw materials and
                                                                               decrease the relative import dependence. Since then annual reports have been taking stock of
                                                                               progress made, including with regard to chemical raw materials.

                                                                               In addition the Commission completed an inventory of trade barriers in the field of raw materials
                                                                               (2009), an assessment of their economic impact and took consequent actions (e.g. WTO case on
                                                                               Chinese export restraints on certain raw materials key for the chemicals industry).

       39 The EU should assess the competitive advantages                      European Union
          gained by the elimination or reduction of import
          tariffs and by opening import quotas for the raw                     The Commission is working on solutions for a stable and low cost access to bio-based raw
          material inputs, including renewables, of the                        materials which would reflect the trade interests of the EU, would balance the needs of various
          various subsectors of the domestic chemicals                         actors involved in the production and use of these raw materials and would also take into
          industry. For environmentally and socially                           account sustainability aspects.
          sensitive renewable raw materials, further
          market opening should go hand in hand with                           Industry
          sustainability guarantees with due consideration
          of WTO rules. Wherever possible, the EU should                       The European Chemicals Industry Association (Cefic) has repeatedly called for improved access
          strive for internationally agreed standards.                         to renewable raw materials at world market prices, either sourced from within or outside the EU,
                                                                               which is one of the key conditions for a move towards a bio-based chemical industry.




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          http://ec.europa.eu/enterprise/policies/raw-materials/index_en.htm



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